Concessional sugar sales taxability remanded for fresh adjudication after inadequate examination by the lower authority.

Taxability of sugar sold at concessional rate to members required fresh adjudication because the lower authority had not properly examined the issue in line with the controlling directions on concessional sugar sales. The Tribunal remanded the matter for reconsideration on merits and in accordance with law, and directed that the assessee be given a reasonable opportunity of hearing. The grounds were treated as allowed for statistical purposes.

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Issues: Whether the dispute concerning taxability of sale of sugar at concessional rate to members required fresh adjudication in light of the directions governing such concessional sales.

Analysis: The issue had not been properly adjudicated by the lower authority in the manner required for giving effect to the controlling directions on concessional sugar sales. The Tribunal found it appropriate to send the matter back for reconsideration so that the issue could be examined afresh on merits and in accordance with law. The assessee was to be afforded a reasonable opportunity of hearing.

Conclusion: The issue was remanded for fresh adjudication and the assessee's grounds were treated as allowed for statistical purposes.

Ratio Decidendi: Where the lower authority has not properly addressed the ative question arising from binding directions, remand for fresh consideration is appropriate, with compliance of natural justice.

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