CBIC Circulars & Instructions Legally Binding on dept; Contravention Renders Actions Illegal

LMB Sons Vs Union of India (Jharkhand High Court)

Conclusion: Where the law prescribed a manner in which a power had to be exercised, then such power could be exercised only in such a manner. No prior notice was served during personal hearings therefore, alleged personal hearings were in contravention of the Circular as circulars or instructions issued by the Central Board of Indirect Taxes and Customs (CBIC) were legally binding on the department.

Held: A

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