HC & SC judgment prevail over excise department circulars & Instructions: SC

The Supreme Court last week emphasised that circulars and instructions issued by the customs and excise boards are no doubt binding on the authorities but when the Supreme Court or a high court declares the law on a disputed question, the courts’ view shall prevail.

The court reiterated the view last week in the case, Commissioner of Central Excise vs Hindoostan Spinning & Weaving Mills Ltd. The authorities had sought clarifications in some earlier judgments. Therefore, the Supreme Court once again asserted that the circulars represented only the understanding of the law by the officials. But they are not binding on the courts.