Legal principle

Board circulars issued under Section 151-A of the Customs Act bind customs adjudicating authorities and cannot be displaced by an ex parte Tribunal order, though in this concurring opinion's view, once the Supreme Court declares the law, authorities must follow it under Article 141 rather than a circular denuded of its rationale.

Court decision

The Revenue's appeal was dismissed in favour of M/s Indian Oil Corporation Ltd., without going into the merits, on the strength of the 1991 Circular: the ex parte Tribunal order did not take precedence over the binding circular under Section 151-A and was not categorical enough to strike at the root of the Circular on the facts of the case.

Facts

The Commissioner of Customs, Calcutta (Revenue) appealed against a decision favouring M/s Indian Oil Corporation Ltd. and another respondent. The dispute turned on the binding effect of a Circular dated 14-8-1991 issued by the Central Board of Excise and Customs under Section 151-A of the Customs Act. The appellant contended that a cloud had been cast on the Circular by an ex parte Tribunal order in the Panchmahal Steel case, so the Circular stood eclipsed. The specific goods involved are not identified in the extract.

Key provisions

• Section 151, Customs Act, 1962 — Certain officers required to assist officers of customs