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TMI Blog2007 (1) TMI 533X X X X Extracts X X X X X X X X Extracts X X X X ..... ase, the Trade Tax Tribunal was legally justified to allow the appeal filed by the dealer? (ii) Whether on the facts and in the circumstances of the case, the Trade Tax Tribunal was legally justified to hold that narrow woven fabrics and braided cords fall under the category of textile and as such are exempt from payment of tax? (iii) Whether on the facts and in the circumstances of the case, the Trade Tax Tribunal was legally justified to hold that braided cord and narrow woven fabrics fall under the category of 'tapes, niwar'...?" From the perusal of the order of the Tribunal it appears that the questions which arise from the order of the Tribunal are whether the Tribunal is justified in holding that braided cord and narro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inally. Additional Commissioner, Trade Tax (Legal) vide its letter dated November 27, 2003 informed the aforesaid decision of the Government to the Additional Commissioner, Kanpur. The Tribunal further held that in the case of dealer itself for the assessment years 1985-86, 1992-93 and 1998-99 the assessing authority exempted the turnover of narrow woven fabrics and braided cord and for the assessment years 1984-85 and 1987-88, the turnover of narrow woven fabrics and braided cord have been exempted from tax in appeal. Heard learned counsel for the parties. Learned Standing Counsel submitted that the order of the Tribunal is erroneous, inasmuch as the narrow woven fabrics and braided cord were liable to tax under the entry "Tapes, ni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal has been rejected, the decision of the Tribunal become final and there is no liability of tax on the narrow woven fabrics and braided cord. It is settled principle of law that the opinion of the Government and the circulars are binding upon the Revenue authorities. In the case of Commissioner of Sales Tax, A.P. v. Indra Industries reported in [2001] 122 STC 100; [2000] UPTC 472, the apex court held as follows (at page 102 of STC): "A circular by tax authorities is not binding on the courts. It is not binding on the assessee. However, the interpretation that is thereby placed by the taxing authority on the law is binding on that taxing authority. In other words, the taxing authority cannot be heard to advance an argument that is c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat it is inconsistent with a statutory provisions. Consistency and discipline are, according to this court, of far greater importance than the winning or losing of court proceedings. In the case of Collector of Central Excise, Bombay v. Jayant Dalal (Pvt.) Ltd. [1997] 10 SCC 402, this court has held that it is not open to the Revenue to advance an argument or even file an appeal against the correctness of the binding nature of the circulars issued by the Board. Similar is the view taken by this court in the case of Collector of Central Excise, Bombay v. Kores (India) Limited [1997] 10 SCC 338." Similar view has been taken by the apex court in a recent decision in the case of SACI Allied Products Ltd., U.P. v. Commissioner of Central ..... X X X X Extracts X X X X X X X X Extracts X X X X
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