Under Section 40(2), where a dispute arises as to whether a particular direction issued to the Authority is a matter of 'policy', the question is finally decided by:

Section 40(1) binds the Authority to comply with Central Government directions on 'questions of policy', while giving the Authority an opportunity to express its views before such a direction is issued, as far as practicable. Section 40(2) then resolves any potential dispute over classification by declaring that the Central Government's OWN decision on whether a particular question is or is not one of 'policy' shall be final - effectively making the Government the sole and unreviewable arbiter of the scope of its own directive power under this section, without recourse to the Board, the High Court, the CAG, or arbitration. This self-referential finality clause is a subtle separation-of-powers point frequently tested.