We wish to draw your kind attention towards the circular dated January, 27th 2005, prohibiting the use of a group account by CDs participants from March, 31st 2005. In this respect we submit that the circular is clearly a violation of section 3 of the Act which has given protection to group accounts to be maintained by the participants.
It is a well settled law, decided by the Apex Court of participants, that circulars cannot override the main statute; we refer to following cases for year perusal.
M/s. Sheikh Spinning Mills Limited reported as GST 2004 CL21
It was held in the above cases as under:
-- "In case there is conflict between the notification and section it will be said that only the substantive provision of the statute will prevail."
In view of the above it would be in the interest of justice and fairplay that the circular may kindly be withdrawn, being violative of the main statute.