Binding circular on handmade biris supports classification and justified recall of pre-deposit directions.

Board circulars clarifying tariff classification of handmade biris are binding on the Revenue, including where the biris are packed with wrappers or labels and manufactured with machine aid by job workers. The Tribunal applied that settled position and accepted that the circular supported classification under the tariff item for biris manufactured without the aid of machines. On the appellants' assertion that duty had already been discharged, the Tribunal found a prima facie case against insisting on further pre-deposit and recalled the earlier stay directions, allowing the miscellaneous applications.

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Issues: Whether the Board's circular clarifying classification of handmade biris was binding on the Revenue so as to justify waiver of pre-deposit and recall of the earlier stay directions.

Analysis: The circular clarified that handmade biris packed with wrappers or labels manufactured with the aid of machines by job workers would still fall under the tariff item for biris manufactured without the aid of machines. The Tribunal noted the settled position that such circulars are binding on the Revenue. In view of the circular and the appellants' assertion that the duty liability had already been discharged, the Tribunal held that a prima facie case existed against insisting on further pre-deposit.

Conclusion: The stay orders directing pre-deposit were recalled and the miscellaneous applications were allowed in favour of the appellants.

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