Can a Circular override an exemption notification?
A concerned Netizen sent us a mail, “Whether an administrative circular of CBEC can override an exemption notification. If yes, following is the point.
Notification No.102 /2007- Cus dated 14.09.2007 stipulates that the importer shall, inter- alia, provide copies of the following documents along with the refund claim:
(i) document evidencing payment of the said additional duty;
(ii) invoices of sale of the imported goods in respect of which refund of the said additional duty is claimed;
(iii) documents evidencing payment of appropriate sales tax or value added tax, as the case may be, by the importer, on sale of such imported goods.
Now, the circular No. 6/2008- Cus dated 28.04.2008 stipulates to submit original tax payment document for purpose of refund.
Our query: Whether a circular can override the condition given in notification.
Please give your comment.
Certainly the Circular cannot over ride the notification, but you know the circulars are binding on the Department and that means the Law is on your side but what you want is the refund and that is with them!
In fact tomorrow we are carrying a Supreme Court order wherein it was observed, If the revenue is allowed to undertake such an exercise, the requirement of publication in official gazette and laying a notification before each House of the Parliament would become nugatory and such a course of action is not envisaged by the Act. It would give licence to the executive to bypass/override the legislature and cannot be countenanced.