2007 (1) TMI 6

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....by the High Court that the Circulars issued by the Central Board of Excise & Customs are binding on the department and the department cannot be permitted to urge that the Circulars issued by the Board are not binding on it. 3.This Court in a series of decisions has held that Circulars issued under Section 119 of the Income Tax Act, 1961 and Section 37B of the Central Excise Act, 1944 are binding ....

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....ecision of the Constitution Bench of this Court in CCE v. Dhiren Chemical Industries (I), (2002) 2 SCC 127 cannot be taken to be good law. 5.This Court in Commissioner of Customs, Calcutta & Others v. Indian Oil Corporation Limited & Another, (2004) 3 SCC 488, after examining the entire case law, culled out the following principles : "1.Although a circular is not binding on a court or an assesse....

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....teel products and processed fabrics. The High Court has rightly come to the conclusion that the circulars issued by the Board are binding on the department. An effort was made by the learned Solicitor General to get this case referred to a larger Bench. We do not accept this contention in view of number of decisions and especially the Constitution Bench decision in Dhiren Chemical Industries (I) (....