TaxTMI 
TaxTMI 
2005 (3) TMI 186
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....ses or is applicable only to goods removed for captive consumption from the date of issue of that Circular. 2. The period of removal of the goods for captive consumption in all these cases is prior to the issue of the Circular. The Revenue's contention is that there were previous Circulars also on the subject (No. 258/92/96-C.X., dated 30-10-1996, Order No. 24/12/1993 dated 31-12-1993, F. No. 6/12/1987-C.X., dated 31-3-1998, F. No. 6/702/1988-C.X., dated 11-3-1988 etc.) and that valuation should be made for a given period in terms of the Circular in force during that particular period. This contention is made on the ground that it is well settled that Circulars are prospective in their operation. Revenue has relied on the judgment of t....
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....o a pending dispute and that a beneficial circular has to be applied retrospectively while oppressive circulars are to be applied prospectively. Learned Counsel also pointed out that it is well settled [1996 (88) E.L.T. 638] that revenue cannot be heard to contend against its own circulars. It is well settled [1999 (112) E.L.T. 765] that an assessee can contest the validity of instructions and that Tribunal and Courts are not bound by the circulars. Learned Counsel has further contended that the judgment of the Apex Court in the case of CCE v. Eswaran & Sons Engineers Ltd. (supra) is not contrary to these principles inasmuch as that judgment has also approved the proposition that an assessee has a right to claim and a Court may compel compl....
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....ctions may be deemed to be modified". Since the earlier instruction is to be deemed to be modified, it would not be permissible to apply them without the said modification. The appellant-assessees are also right in their contention that Revenue is bound by the Circular; while assessees are at liberty to contest the circulars. Therefore, in pending matters, the assessee can seek determination of his case under a later beneficial circular by pointing out that instructions contained in the earlier circulars are incorrect and the matter should be settled according to "general principles" developed by an authority competent to lay down standards. Tribunal and Courts are duty bound to consider such a contention. This position enunciated in the ju....
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.... was not applicable to the facts of the present case. As stated above, in the present case, the Assistant Collector had taken a prima facie view for purposes of reclassification as far back as 17-12-1993. Therefore, the Circular dated 14-7-1994 had no application to the facts of the present case. The judgment of the Supreme Court in the case of H.M. Bags Manufacturer (supra) did not deal with the case where the department had issued show cause notice purporting to reclassify the product prior to the issuance of Instructions by the Board. Therefore, the said judgment has no application to the facts of the present case." The ratio of this judgment is that a legally sustainable claim, which had been raised by the Revenue prior to and independ....