M/S. RANADEY MICRONUTRIENTS ETC. versus COLLECTOR OF CENTRAL EXCISE

M/S. RANADEY MICRONUTRIENTS ETC. versus COLLECTOR OF CENTRAL EXCISE

Circulars issued by the Central Board of Excise and Customs under Section 37B, even if not so expressly stated, are binding on the Revenue and Central Excise Officers. Consequently, micronutrients are classifiable under heading 31.05 as 'other fertilisers' from the date of the later circular, and it is not open to the Revenue to dispute this classification by pleading inconsistency with statutory provisions while the circular remains in operation.

Parties
Appellant: Ranadey Micronutrients Etc.; Respondent: Collector of Central Excise
Jurisdiction
India
Judgment Date
10 September 1996
Procedural Posture
Civil Appeal / Supreme Court Final Judgment
Outcome
Appeal allowed
Legal Topics
Classification Under Central Excise Tariff, Binding Nature of CBEC Circulars, Interpretation of Excise Act
Taxation Central Excise Classification Under Central Excise Tariff Binding Nature of CBEC Circulars Interpretation of Excise Act

Case Brief

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Parties

Ranadey Micronutrients Etc.

Appellant

Collector of Central Excise

Respondent

Procedural Posture

Civil Appeal / Supreme Court Final Judgment

Legal Issues

  1. 1 Whether micronutrients are to be classified as 'plant growth regulators' under heading 38.08 or as 'other fertilisers' under heading 31.05 of the Central Excise Tariff
  2. 2 Whether circulars issued by the Central Board of Excise and Customs are binding on the Revenue even if inconsistent with statute

Ratio Decidendi

Circulars issued by the Central Board of Excise and Customs under Section 37B, even if not so expressly stated, are binding on the Revenue and Central Excise Officers. Consequently, micronutrients are classifiable under heading 31.05 as 'other fertilisers' from the date of the later circular, and it is not open to the Revenue to dispute this classification by pleading inconsistency with statutory provisions while the circular remains in operation.

Court Disposition

Appeal allowed

Orders

  • Judgment and order of the Tribunal set aside
  • Micronutrients manufactured by appellants are exempt from payment of excise duty for the relevant periods