9911796707
TMI Blog1996 (12) TMI 373X X X X Extracts X X X X X X X X Extracts X X X X ..... they were put into the drums for being rotated in order to get them mixed thoroughly and thereafter they were packed and sold. The question arose whether such processing carried on by the petitioner tantamounted to manufacture of the tea. The Tribunal considering the decisions of the Supreme Court and of the High Court relied on by the petitioner in the course of hearing and an order of the assessing authority relating to the assessment year 1977-78 reached the conclusion that the blending process carried on by the petitioner, did not tantamount to manufacture. The assessing authority made an ex parte order for the assessment year 1990-91 which is relevant in this case. The Tribunal set aside the order of the assessing authority and remande ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal. The Judicial Commissioner found in expressed terms that the respondent had acted arbitrarily and in clear violation of the directions given by the Tribunal. In that background, the Supreme Court held as follows: (8) ............If a subordinate Tribunal refuses to carry out directions given to it by a superior Tribunal in the exercise of its appellate powers, the result will be chaos in the administration of justice and we have indeed found it very difficult to appreciate the process of reasoning by which the learned Judicial Commissioner while roundly condemning the respondent for refusing to carry out the directions of the superior Tribunal, yet held that no manifest injustice resulted from such refusal. (9) ............Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he higher appellate authorities should be followed unreservedly by the subordinate authorities........... If this healthy rule is not followed, the result will only be undue harassment to assessees and chaos in administration of tax laws. From these authorities, it is amply clear that the assessing authority was bound by the decision taken by the Appellate Tribunal in the remand order. 7.. We are, therefore, of the opinion that the assessing authority while making the assessment pursuant to the remand order, was not right in holding that the blending process carried on by the petitioner, tantamounted to manufacture of the tea, when the counter view was taken by the Appellate Tribunal in the remand order. 8.. However, submission of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titioner was not in the nature of manufacture, it was not kept open to the assessing authority to take a view contrary to the view taken by the Appellate Tribunal and the duty of the assessing authority was to complete the assessment pursuant to the remand order following the decision of the Appellate Tribunal that the blending process carried on by the petitioner, was not in the nature of manufacture of the tea. 11.. In the result, the petition succeeds and is allowed. The impugned order dated 13th February, 1995 passed by the assessing authority (annexure 4 to the writ petition) is quashed to the extent the assessing authority held contrary to the Tribunal s order that the blending process carried on by the petitioner, tantamounted to m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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