Constitutional Bench ruling of SC - whether retrospective?

Decisions of the Supreme Court are, of course, binding under Article 141. When a decision of a smaller Bench is overruled by a larger Bench, especially, in respect of a tax provision, the effect would, obviously, take effect from the date the tax provision is in the statute, unless the Apex Court applies the principle of 'doctrine of prospective overruling' and states so in the decision.

Of course, the Department and the tax payer would be governed by the provisions related to limitation, in the respective tax laws.

I don't think, the doctrine of promissory estoppel can be applied to decisions of the Apex Court, in the context of the subsequent overruling of decisions by the larger Bench. In effect, the law laid down by the Apex Court, in terms of Article 141, would be the larger Bench's decision and not that decided by the smaller Bench.

S Sivakumar, Advocate

SUBRAMANI SIVAKUMAR 22/10/2014