COMMISSIONER OF CENTRAL EXCISE, MUMBAI vs M/S. HINDOOSTAN SPINNING & WVG.M.LTD&ANR

The Supreme Court clarified that the law laid down by the Court is binding on all courts and tribunals, and circulars issued by the Central Board of Excise and Customs cannot override this law. The Court emphasized that in cases where benefits of exemption notifications have been granted based on such circulars, the Revenue cannot reopen those cases. However, in ongoing disputes, courts must adhere to the interpretation provided in the Constitution Bench decision in Collector of Central Excise v. Dhiren Chemical Industries, which was reaffirmed in this judgment, thereby overruling previous conflicting interpretations.