ORDER :

1. Leave granted in the special leave petitions. We agree with the view taken, Arviva Industries (I) Ltd. v. Union of India, (2004) 5 Bom CR 664 by the High Court that the circulars issued by the Central Board of Excise and Customs are binding on the Department and the Department cannot be permitted to urge that the circulars issued by the Board are not binding on it.

2. This Court in a series of decisions has held that the circulars issued under Section 119 of the Income Tax Act, 1961 and Section 37-B of the Central Excise Act, 1944 are binding on the Revenue. [See Navnit Lai C. Javeri v. K.K. Sen, AIR 1965 SC 1375, Ellerman Lines Ltd. v. CIT, (1972) 4 SCC 474, K.P. Varghese v. ITO, (1981) 4 SCC 173 Union of India v. Azadi Bachao Andolan, (2004) 10 SCC 1, CCE v. Usha Martin Industries, (1997) 7 SCC 47, Ranadey Micronutrients v. CCE, (1996) 10 SCC 387, CCE v. Jayant Dalai (P) Ltd., (1997) 10 SCC 402, CCE v. Kores (India) Ltd., (1997) 10 SCC 338, Paper Products Ltd. v. CCE, (1999) 7 SCC 84 and Dabur India Ltd. v. CCE, (2004) 13 SCC 107]

3. A slightly different approach was taken by this Court in Hindustan Aeronautics Ltd. v. CIT, (2000) 5 SCC 365 by two learned Judges which run