(1) THE High court decided against the Sales Tax authorities basing itself upon a circular addressed by the Commissioner of Sales Tax to all Assistant Commissioners (Tax Assessment). The Sales Tax authorities challenge the High courts decision by special leave. On behalf of the Sales Tax authorities, it is contented that the said circular is contrary to the law and that, therefore, the High court should have decided the matter without reference to it. Reliance was placed upon the judgment of two learned judges of this Court in Bengal Iron Corporation & Anr. v. Commercial Tax Officer & Ors. JT 1993 (3) SC 134 = (1994 Suppl.(l) SCC 310). In Paragraph 18, it was said : "So far as clarifications/circulars issued by the central government and/or state Government are concerned, they represent merely their understanding of the statutory provision. They are not binding upon the courts. It is true that those not clarifications and circulars were communicated to the concerned deals but even so nothing prevents the State from recovering the tax, if in truth such tax was leviable according to law."

(2) IT was submitted on behalf of the Sales Tax authorities that notwithstanding