Held - It is a settled proposition of law that circular cannot have an overriding effect on a statutory provision. This well settled proposition of law is propounded by the Hon’ble Apex Court in the case of Glaxo SmithKline Pharmaceuticals Limited Vs. Union of India and others reported in AIR 2014 SC 410.

The circular in question which has been dealt with is also ex facie not possible to be taken for assistance to order for re-export o.....

Held - We are of the firm opinion that the circular dated 31.03.2020, being a subordinate legislation, is repugnant and conflicting to the parent legislation i.e. Section 54(3)(ii) of the CGST Act and hence, the same cannot be applied to oust the legitimate claim for accumulated ITC refund filed by the petitioner. Otherwise also, the claim for refund of ITC filed by the petitioner was for a period prior to issuance of the circular dated 31.03......

Held - Any circular issued under Section 168(1) of the Act is only for the purpose of bringing uniformity in the implementation of the Act. The intention of the legislature as expressed in Section 54(3) of the Act is clear and unambiguous. The Section, in absolute uncertain terms, mentions that refund of any unutilized input tax credit may be claimed where credit has accumulated on account of rate of tax on inputs being higher than the rate of.....

Held - The law in this respect is settled to the extent that whenever there is a conflict between the provisions of a statutory Act and that of a notification or circular issued by an administrative authority, the provisions of the statutory Act would prevail over such conflicting provisions of a notification or a circular of an administrative authority. The said principle of law is so well entrenched that we are not required to refer to any s.....

Held - That the Circular cannot override the law. Section 54 of the CGST Act provision as well as the Rule 90(3) does not provide any time limit for filing of fresh application in response to deficiency memo. The Circular cannot go beyond the law and cannot prescribe a time limit which is not consistent with the law. Circular should be consistent with the spirit of law and it should resolve the operational difficulties but in the present case .....

Held - Circulars might mitigate rigours of law by granting administrative relief beyond relevant provisions of the statute, however, Central Government is not empowered to withdraw benefits or impose stricter conditions than postulated by the law. Circulars and instructions issued by the Board are no doubt binding in law on the authorities under the respective statutes, but when the Supreme Court or the High Court declares the law on the quest.....