Scope of remand limits reassessment: final turnover issue on discount could not be reopened beyond the input tax credit question.

Section 25(1) of the Kerala Value Added Tax Act, 2003 permits reopening only where turnover has escaped assessment, been under assessed, a deduction was wrongly made, or input tax credit was wrongly availed. Where the appellate remand was confined solely to input tax credit on discount received, the assessing authority could not enlarge the scope of remand and revisit the already concluded question of adding discount to turnover. Because that issue had attained finality and was not challenged in appeal, reopening it in reassessment was beyond jurisdiction and unjustified, and the reassessment to that extent was liable to be set aside.

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Issues: Whether, after the appellate authority remitted the matter only on the question of input tax credit, the assessing authority could reopen the completed assessment afresh and revisit the addition of discount to turnover under Section 25(1) of the Kerala Value Added Tax Act, 2003.

Analysis: Section 25(1) empowers reopening only where turnover has escaped assessment, has been under assessed, a deduction has been wrongly made, or input tax credit has been wrongly availed of. The remand by the appellate authority was confined to the assessee's entitlement to input tax credit on the discount received. The question whether the discount had to be added to turnover had already been concluded in the earlier assessment order, and the revenue had not challenged that order. In these circumstances, the assessing authority could not enlarge the remand and reopen the completed assessment on a matter that was not before the appellate authority and had already attained finality.

Conclusion: The reassessment to the extent it reopened the issue of adding discount to turnover was unjustified and illegal, and the impugned order was liable to be set aside.

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