2007 (1) TMI 6 - SC - Central Excise

Departmental Clarification Circular issued by CBEC are binding on Department As per Supreme Court in several cases that circulars issued are binding on the Revenue - CBEC circular extending Brand rate of drawback to exporters of impugned goods

Summary

Issues:
Interpretation of the binding nature of Circulars issued by the Central Board of Excise & Customs on the revenue department.

Analysis:
The Supreme Court granted leave in special leave petitions and agreed with the High Court's view that Circulars issued by the Central Board of Excise & Customs are binding on the department. The Court cited various decisions to support this, emphasizing the binding nature of Circulars issued under specific sections of relevant Acts on the revenue department. However, a different view in Hindustan Aeronautics Ltd. was deemed contrary to a subsequent Constitution Bench decision, thus not considered good law. The Court highlighted that the revenue department cannot take a stand contrary to the Circulars issued by the Board, as established in previous judgments.

Further Analysis:
The Court referenced Circular No. 39/99-Cus., dated 25th June, 1999, extending benefits to exporters for specific products. It affirmed the binding nature of Circulars issued by the Board on the department, rejecting the contention to refer the case to a larger Bench. The judgment dismissed Civil Appeals without costs and directed transferred cases to respective High Courts for fresh decisions based on the law laid down in the current judgment, emphasizing expeditious resolution.