TMI Blog1999 (8) TMI 70X X X X Extracts X X X X X X X X Extracts X X X X ..... r which is in force at the relevant point of time. it is an admitted fact in the present case that by virtue of Circular No. 4/85, dated 23-7-1986 as clarified by Circular dated 7-8-1987, all the three products of the appellant are to be treated as the products of the printing industry and not that of the packaging industry. A change in the said view of the Board occurred for the first time by virtue of its Circular No. 6/89, dated 16-1-1989. Further, the Board itself by its subsequent Circular No. 29/89, dated 5-5-1989 has made it abundantly clear that the change notified in Circular No. 6/89 will be prospective from the date of issuance of Circular No. 6/89, that is, from 16-1-1989. Therefore, it is clear that till the issuance of Circ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Board dated 7-8-1987; the aforesaid products of the appellant are to be classified as the products of the printing industry subject to duty under Chapter 49 of the Schedule to the Central Excise Tariff Act, 1985. Consequently, the appellants contend that their products are entitled to the benefit of duty exemption available by virtue of Notification Nos. 122/75 and 234/82 as applicable at the relevant time. It is the common case of the parties that the view taken by the Board in the abovementioned Circulars dated 23-7-1986 and 7-8-1987 was reviewed with effect from 16-1-1989 by virtue of Circular No. 6/89 of the Board dated 16-1-1989. Consequently, the said products of the appellant are now to be classified as the products of the packa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve did not correctly reflect the correct classification and correct position is as clarified by subsequent Circular of the Board dated 16-1-1989 and also in view of the judgment of this Court in the case of Rollatainers Ltd. v. Union of India [1994 (72) E.L.T. 793], the Tribunal was justified in dismissing the appeal of the appellant. 4.The question for our consideration in these appeals is : What is the true nature and effect of the Circulars issued by the Board in exercise of its power under Section 37B of the Central Excise Act, 1944 ? This question is no more res integra in view of the various judgments of this Court. This Court in a catena of decisions has held that the Circulars issued under Section 37B of the said Act are binding o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td. [1997 (89) E.L.T. 441 (S.C.) = 1997 10 SCC 338]. 5.It is clear from the above said pronouncements of this Court that, apart from the fact that the Circulars issued by the Board are binding on the Department, the Department is precluded from challenging the correctness of the said Circulars even on the ground of the same being inconsistent with the statutory provision. The ratio of the judgment of this Court further precludes the right of the Department to file an appeal against the correctness of the binding nature of the Circulars. Therefore, it is clear that so far as the Department is concerned, whatever action it has to take, the same will have to be consistent with the Circular which is in force at the relevant point of time. 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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