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2003 (4) TMI 81 - HC - Income TaxTax collection at source – default in not collecting tax - In our opinion after the circular of the CBDT dated June 27, 2002, the controversy in this case really does not survive since under that circular the maximum retail price is treated to be the sale price as envisaged by sub-clause (iii) of clause (a) of the Explanation to section 206C which has come into effect from March 16, 2001, i.e., the date on which the notification for fixing the maximum retail price of country liquor for the State of Uttar Pradesh was issued. - In Collector of Central Excise v. Dhiren Chemical Industries it has been held that the circulars of the Department are binding on the tax authorities. In paragraph 11 of that judgment the Supreme Court has said that even if the court has taken a different interpretation yet the interpretation of the Central Board in its circular shall be binding on the Revenue. Although that decision was under the Central Excise Act in our opinion it will also, apply to the circulars issued by the Central Board of Direct Taxes under section 119 of the Income-tax Act. - Hence in view of the circular dated June 27, 2002, this writ petition is allowed.
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