The petitioner challenged denial of input tax credit on demo vehicles used in the course of business. During pendency of the writ petition, the Central Board of Indirect Taxes and Customs issued a circular clarifying that ITC is available on demo vehicles subject to prescribed conditions. The factual background showed that the impugned order denying credit was passed prior to issuance of the said circular.

The Court held that the subsequent CBIC circular would prevail over the impugned order. Since there was no dispute that the petitioner was entitled to ITC in terms of the circular, nothing further survived for adjudication. The writ petition was disposed of accordingly.