Clarificatory tax circulars may apply retrospectively, requiring fresh classification of Micro/Mini SD cards on remand.

A Board circular clarifying the classification of Micro/Mini SD cards was treated as clarificatory and beneficial, so it operated retrospectively rather than only prospectively. On that basis, the classification dispute had to be reconsidered afresh in light of the circular, with the parties afforded hearing and further evidence as admissible in law. The impugned order was set aside and the matter remanded for de novo decision on merits under the circular.

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Issues: Whether the Board circular clarifying the classification of Micro/Mini SD cards applied retrospectively so as to require the classification dispute to be decided afresh in the light of that circular.

Analysis: The circular on Micro/Mini SD cards was treated as clarificatory and beneficial in nature. A clarificatory circular operates retrospectively, while a beneficial circular is not confined to prospective application. In that view, the authorities below were required to consider the dispute afresh by applying the circular and permit hearing and further evidence as admissible in law.

Conclusion: The circular applied retrospectively, the impugned order was set aside, and the matter was remanded for de novo decision on merits in accordance with the circular.

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