- (1.) The Revenue has preferred this appeal challenging a portion of the order passed by the Karnataka Appellate Tribunal which after setting aside the order of the Appellate Commissioner had remanded the matter back to him for fresh consideration after looking into the documents on which the assessee relies on. Paragraph 10 of the order reads as under: "10. In view of the above observations already made by the Tribunal in respect of the same appellate for other tax periods, in our considered opinion, the FAA should verify the records fully which by this time might have received by him. We also direct the appellant to produce the agreements and purchase invoices in support of his claim before the FAA. Tax levied at higher rate on ductile iron pipes is not sustainable. Hence, we pass the following order answering the above point in the negative. ORDER The appeal No. 2139 of 2011 is allowed. Consequently the order dated 7-4-2011 passed by JCCT (FAA) in No. KVAT.AP.78/2008-09 so far as it relates to the tax period of November 2006 rejecting rectification application is set aside and the case is remanded to FAA to examine the records, purchase invoices and agreements before considering the claims of the appellant and pass appropriate order".
(2.) A perusal of the order discloses the Tribunal did not decide the case on merits. It noticed that the First Appellate Authority has not verified the records and not afforded full opportunity and without perusing the records, proceeded to reject the application which is not justifiable. Therefore, rightly it has set aside the order passed by the First Appellate Authority. However, it further observed as under: "Tax levied at higher rate on ductile iron pipes is not sustainable". This is a decision on merits which is rendered without any reasons. When the Appellate Tribunal was setting aside the order on the ground of violation of principles of natural justice and non-application of mind by the Appellate Authority, without assigning any reasons it could not have held that the tax levied at higher rate on ductile iron pipes is not sustainable. Therefore, that portion of the order is unsustainable. It is accordingly set aside. Now, that the matter is remanded back to the First Appellate Authority, the First Appellate Authority shall consider the rival claims and then decide the case on merits and in accordance with law after taking note all the materials to be produced by the assessee including the orders passed in this case earlier. Hence, we pass the following: ORDER The appeal is partly allowed as set out above.;