Supreme Court seeks Constitution Bench ruling on circular vs. judgment conflict, stresses procedural compliance

The Supreme Court referred the issue of whether a circular issued by the Board would prevail over its judgment to a Constitution Bench for resolution. The outcome of the Constitution Bench's decision would determine the fate of the appeals, either dismissal or allowance based on the prevailing authority. Additionally, the Court did not permit a new point regarding entitlement to exemption under a Notification to be raised as it was not previously raised during the proceedings and emphasized the importance of adhering to procedural requirements in legal proceedings.

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Issues:
1. Interpretation of whether a circular issued by the Board would prevail over the judgment of the Supreme Court.
2. Whether the appellants are entitled to exemption under a Notification based on a new point raised.

Analysis:

Issue 1: Interpretation of Circular vs. Judgment
The Supreme Court, in a matter tagged with Civil Appeal No. 3197 of 2000, clarified the issue of whether a circular issued by the Board would prevail over the judgment of the Court. The Court acknowledged a Circular of the Board dated 27th October, 1994, which presented an interpretation consistent with the arguments made before the Court. Recognizing a divergence of opinion on this matter, the Court referred the question to a Constitution Bench for resolution. The Court emphasized that the tagging of matters with the Constitution Bench was solely to determine the hierarchy between Circulars and Judgments. The outcome of the Constitution Bench's decision would dictate the fate of the appeals, with dismissal or allowance based on the prevailing authority.

Issue 2: Entitlement to Exemption under Notification
The Court addressed a new point raised regarding the appellants' entitlement to exemption under a Notification based on a proviso. However, the Court noted that this point was not previously raised during the proceedings and was not part of the Special Leave Petition. The Court emphasized that such new points, requiring a mix of law and factual determinations, cannot be introduced for the first time at later stages of the case. Consequently, the Court did not permit the new point to be raised, highlighting the importance of adhering to procedural requirements and raising all relevant arguments in a timely manner to ensure a fair and orderly legal process.

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