M/S. Sandur Micro Circuits Ltd vs C.C.E, Belgaum

The Supreme Court held that Circular No. 42 of 1997 cannot override Notification No. 2/95-CE and its amendments, as the latter is issued under the authority of Section 5A of the Central Excises and Salt Act, 1944. The Court established that a circular cannot impose new conditions that restrict the scope of a statutory exemption notification. Consequently, the appeals were dismissed, affirming the Tribunal's decision that the appellant's claim was not legally tenable.