1996 (9) TMI 124 - SUPREME COURT

Classification of micronutrients for the purposes of Excise duty - Held that:- There can be no doubt whatsoever, in the circumstances, that the earlier and later circulars were issued by the Board under the provisions of Section 37B and the fact that they do not so recite does not mean that they do not bind Central Excise officers or become advisory in character. There can be no doubt whatsoever that after 21st November, 1994, Excise duty could be levied upon micronutrients only under the provisions of Heading 31.05 as "other fertilisers". If the later circular is contrary to the terms of the statute, it must be withdrawn. While the later circular remains in operation the Revenue is bound by it and cannot be allowed to plead that it is not valid.

The appeals are allowed. The judgment and order of the Tribunal under appeal is set aside. The micronutrients manufactured by the appellants being exempt from the payment of excise duty, no order in this regard is required.