COMMISSIONER OF CENTRAL EXCISE, MUMBAI versus M/S. HINDUSTAN SPINNING & WVG. M. LTD. AND ANR.

COMMISSIONER OF CENTRAL EXCISE, MUMBAI versus M/S. HINDUSTAN SPINNING & WVG. M. LTD. AND ANR.

The correct view is that law declared by the Supreme Court is binding on courts and tribunals, and circulars issued by executive authorities cannot override or prevail over such law; the effect of paragraph 11 of Dhiren Chemical's case is limited and clarified as per Kalyani Packaging case.

Parties
Appellant: Commissioner of Central Excise, Mumbai; Respondents: M/s. Hindustan Spinning & Wvg. M. Ltd. and Anr.
Jurisdiction
India
Judgment Date
16 April 2009
Procedural Posture
Civil Appeal / On Appeal From the Customs, Excise and Service Tax Appellate Tribunal, Mumbai; Appeal Disposed and Remanded to Tribunal
Outcome
Remanded to Tribunal; Appeal and all interim applications disposed of.
Legal Topics
Binding Nature of Circulars, Interpretation of Statutory Provisions, Article 141 of the Constitution
Tax Law Binding Nature of Circulars Interpretation of Statutory Provisions Article 141 of the Constitution

Case Brief

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Parties

Commissioner of Central Excise, Mumbai

Appellant

M/s. Hindustan Spinning & Wvg. M. Ltd. and Anr.

Respondents

Procedural Posture

Civil Appeal / On Appeal From the Customs, Excise and Service Tax Appellate Tribunal, Mumbai; Appeal Disposed and Remanded to Tribunal

Legal Issues

  1. 1 Whether circulars issued by authorities are binding on Courts/Tribunal in the face of Supreme Court judgments

Ratio Decidendi

The correct view is that law declared by the Supreme Court is binding on courts and tribunals, and circulars issued by executive authorities cannot override or prevail over such law; the effect of paragraph 11 of Dhiren Chemical's case is limited and clarified as per Kalyani Packaging case.

Court Disposition

Remanded to Tribunal; Appeal and all interim applications disposed of.

Orders

  • The matter is remanded to the CESTAT, Mumbai, for decision in view of the applicability and/or relevance of Ratan Melting's case.
  • All contentions are left open to the parties.