Commissioner Of Central Excise vs Ratan Melting And Wire Industries, ...

The Supreme Court held that the law laid down by this Court is binding on all courts and tribunals, and circulars issued by the Central Board of Excise and Customs cannot prevail over Supreme Court judgments. The Court clarified that in cases where benefits of exemption notifications have been granted, the Revenue is bound not to reopen those cases. However, in ongoing disputes, courts must adhere to the Supreme Court's interpretation as established in Collector of Central Excise, Vadodra v. Dhiren Chemical Industries, [2002] 2 SCC 127. The matter was referred to a larger bench for further clarification.