Binding circular on scored-out MRP controls revenue action and makes earlier inconsistent directions inoperative.

A binding CBEC circular clarified that where one MRP is scored out and another printed MRP remains on the package, the package cannot be treated as showing two MRPs for revenue action. That clarification governed the field and required the revenue authorities to act consistently with it. Earlier contrary circulars and consequential letters could not continue to operate against the later binding clarification. The petition was therefore disposed of, and the interim order was vacated as having become infructuous.

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Issues: Whether the petition had to be disposed of in view of the binding circular clarifying the treatment of a scored-out MRP on the package.

Analysis: The circular issued by the Central Board of Excise and Customs clarified that where one MRP is scored out and another printed MRP remains on the package, the package cannot be treated as having two MRPs for the purpose of action by the revenue. As the circular was binding on the revenue authorities, the impugned circular and the consequential letters were required to be acted upon in accordance with that clarification.

Conclusion: The petition was disposed of, and further action was to conform to the later binding circular.

Final Conclusion: The challenge did not survive independently after the binding clarification, and the interim order was vacated as having become infructuous.

Ratio Decidendi: A binding departmental circular clarifying the applicable treatment of a packaging declaration governs subsequent revenue action and renders inconsistent earlier directions inoperative.

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