Appellate remand powers cannot compel acceptance of books of account and recomputation where discretion must remain independent.

Section 34(3) of the Kerala General Sales Tax Act allows the appellate authority to confirm, reduce, enhance, annul, or set aside an assessment and direct fresh enquiry, together with incidental powers needed to give effect to that jurisdiction. A direction requiring the assessing authority to accept specified books of account and recompute the assessment was treated as improper because it fettered the assessing authority's discretion and went beyond a lawful remand. The appropriate course was either to decide the assessment on the materials or to remit it for fresh disposal with liberty to examine the books independently. The revision was nonetheless dismissed, and the assessment order remained undisturbed.

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Issues: Whether, under section 34(3) of the Kerala General Sales Tax Act, 1963, the appellate authority could direct the assessing authority to accept the assessee's books of accounts and recompute the assessment, or whether it should have confined itself to confirming, modifying, annulling, or remitting the assessment for fresh consideration.

Analysis: Section 34(3) empowers the appellate authority to confirm, reduce, enhance, or annul an assessment, or to set it aside and direct a fresh assessment after further enquiry. The provision also carries incidental powers necessary to make those express powers effective. A direction that the assessing authority must accept particular books of accounts and recompute tax on that basis improperly fetters the assessing authority's discretion and goes beyond a proper remand. The more appropriate course would have been either to decide the assessment itself or to remit the matter for fresh disposal with freedom to examine the books independently. Nevertheless, because the tax involved was small, the Court declined to interfere further.

Conclusion: The appellate authority's direction was improper in law, but the revision was dismissed and the assessment order under challenge was left undisturbed.

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