A circular which is in direct conflict with the notification - a settled issue is once again unsettled

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... circular which is in direct conflict with the notification - a settled issue is once again unsettled <br>News and Press Release<br>Dated:- 17-8-2008<br><BR>A is commonly understood that a circular issued by the board is binding on the revenue officials and as per the earlier decision of the honorable Apex court, revenue authorities can not challenge the authority of the circular even if is not in....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... conformity with the law. See COLLECTOR OF C. EX., VADODARA Versus DHIREN CHEMICAL INDUSTRIES reported in 2007 -TMI - 1709 - SUPREME COURT OF INDIA, in which honorable SC has held that, "We need to make it clear that, regardless of the interpretation that we have placed on the said phrase, if there are circulars which have been issued by the Central Board of Excise and Customs which place a diff....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....erent interpretation upon the said phrase, that interpretation will be binding upon the Revenue." But, this time, again, revenue has ignored the authority of the circular No. 42/97, dated 19-9-97 issued by the Board and followed the provisions of the Notification 2/95. CESTAT has approved the action of the adjudicating authority as no circular can override the provisions of a notification. Now,....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Apex court has also said that no circular can override the provisions of the notification. See M/s. Sandur Micro Circuits Ltd. Versus Commissioner of Central Excise, Belgaum reported in 2008 -TMI - 30206 - SUPREME COURT. In this case, honorable Apex Court has held that, "The issue relating to effectiveness of a Circular contrary to a Notification statutorily issued has been examined by this Cou....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rt in several cases. A Circular cannot take away the effect of Notifications statutorily issued. In fact in certain cases it has been held that the Circular cannot whittle down the Exemption Notification and restrict the scope of the Exemption Notification or hit it down. In other words it was held that by issuing a circular a new condition thereby restricting the scope of the exemption or restric....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ting or whittling it down cannot be imposed. The principle is applicable to the instant cases also, though the controversy is of different nature." After this, one can say that, in India, - Three things in life are certain: death, taxes and litigations (As against an old saying - Two things in life are certain: death and taxes)<BR> News - Press release - PIB....