Government circulars have to conform to the law

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Ruling in Chartered Accountants Society (Regd) v Union of India and Ors, Delhi High Court recently quashed two circulars issued by the Ministry of Finance, holding that they could not be enforced as they were contrary to the Finance Act, 1994, and the Point of Taxation Rules, 2011.

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The update of court judgments is compiled by Bhasin & Co, Advocates, a corporate law firm based in New Delhi. The authors can be contacted at lbhasin@bhasinco.in or lbhasin@gmail.com. Readers should not act on the basis of this information without seeking professional legal advice.