Applicability of a Circular issued by the Board - Prospective or Retrospective - Demand of duty prior to issuance of Circular

Case - JAI FIBRES LTD. Versus COMMISSIONER OF CENTRAL EXCISE, MUMBAI-III - 2007 (11) TMI 22 - SUPREME COURT OF INDIA

H.M. Bags Manufacturer (supra) becomes relevant in view of the terminology used by the Board in issuing the aforementioned circular. Therein this Court clearly held that such a circular will have prospective effect, particularly when the word "henceforth" has been used by the Board. H.M. Bags Manufacturer, therefore, is a binding precedent. If the Board itself did not intend to classify HDPE bags with retrospective effect, in our opinion, no demand for duty prior to issuance of the said notice could be made.