Circular cannot take away the effect of Notifications statutorily issued – Supreme Court
The Supreme Court, yesterday, delivered a landmark judgement, where the Supreme Court held that the provisions of a notification would prevail over the instructions in a Board Circular.
We were under the impression that the Supreme Court on many occasions held that Board Circulars are binding on the Departmental Officers. But now the Supreme Court says that, “A Circular cannot take away the effect of Notifications statutorily issued.”
Interestingly, before the Tribunal, the appellants did not argue that the Board’s Circulars are binding on the revenue though they are contrary to the statutory provisions/notifications. But after the dismissal of the appeals, they filed a ROM before the Tribunal and raised the contention that as per the judgement in Dhiren Chemical Industries case the Circulars are binding on the revenue. But the Tribunal dismissed the ROM application.
Strangely, again the binding nature of circulars was not argued before the Supreme Court!!!!!!
We are proud to bring you today this judgement which was delivered only yesterday!
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