Section 37B circulars cannot override quasi-judicial adjudication where Tribunal precedent conflicts, requiring reconsideration of the circular.

A circular issued under Section 37B of the Central Excise Act cannot control or curtail the quasi-judicial function of adjudicating authorities. Where the Tribunal has already taken a binding view, a conflicting departmental circular cannot be treated as conclusive against the assessee, because it would create inconsistency in adjudication. The proper course is for the Board to reconsider the circular in light of the prevailing legal position and, if necessary, issue a fresh circular. The circular was therefore not binding on adjudicating authorities until reconsidered.

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Issues: Whether a circular issued under Section 37B of the Central Excise Act, 1944 could bind adjudicating authorities so as to require inclusion of dealers' post-sale services and provision for PDI in assessable value, notwithstanding a contrary view taken by the Tribunal.

Analysis: A circular under Section 37B cannot control or curtail the quasi-judicial function of the adjudicating authorities. Where the Tribunal has taken a binding view on the point, a conflicting departmental circular would create inconsistency in adjudication and cannot be treated as conclusive against the assessee. The proper course is for the Board to reconsider the circular in the light of the prevailing legal position and, if necessary, issue a fresh circular.

Conclusion: The impugned circular was held not to bind the adjudicating authorities till reconsidered, and the petition was allowed.

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