Binding Section 37B circular governs cassette housing classification under Heading 39.26, overriding contrary departmental view.

Cassette housings for audio/video cassettes were clarified to fall under Heading 39.26 of the Central Excise Tariff, not Heading 85.23. A circular issued under Section 37B of the Central Excises Act is binding on departmental authorities, so the classification adopted in the impugned order could not prevail against that clarification. The correct classification was therefore under Heading 39.26 in favour of the assessee.

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Issues: Whether the shell housing for audio/video cassettes was classifiable under Heading 85.23 or Heading 39.26, and whether the Board's circular issued under Section 37B of the Central Excises Act bound the departmental authorities.

Analysis: The circular clarified that cassette housings, casings, hubs, rollers and stoppers were classifiable under Heading 39.26 of the Central Excise Tariff. A circular issued under Section 37B is binding on the departmental authorities and must be followed, and the classification adopted in the impugned order could not stand against that binding clarification.

Conclusion: The correct classification was held to be under Heading 39.26, in favour of the assessee.

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