Recorded satisfaction under Central Excise law: authorisation to appeal remains valid without fixed formulaic words.

Section 35E(2) of the Central Excise Act requires the Commissioner to apply his mind and record reasons showing why a subordinate adjudication order is considered erroneous before directing a departmental appeal. The authorisation is not invalid merely because it does not use the exact words "not legal and proper" if the recorded reasons otherwise show dissatisfaction with the adjudication order. Here, the Commissioner had stated specific reasons for rejecting the order in original under Rule 57C of the Central Excise Rules, so the satisfaction requirement was met on substance. The decisions treating the authorisation as invalid were unsustainable, and the departmental appeal authorisation was held valid.

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Issues: Whether, under section 35E(2) of the Central Excise Act, 1944, the Commissioner's authorisation to file an appeal is invalid merely because it does not use the words "not legal and proper", even though the order records reasons showing dissatisfaction with the adjudication order.

Analysis: Section 35E(2) empowers the Commissioner to direct an appeal after satisfying himself as to the legality or propriety of the subordinate order. The determinative requirement is not the use of any particular phrase, but whether the order of authorisation reflects application of mind and records reasons indicating why the adjudication order is considered erroneous. On the facts, the Commissioner had recorded specific reasons under Rule 57C of the Central Excise Rules, 1944 for rejecting the order in original and for directing an appeal. The absence of the exact words "not legal and proper" did not negate the recorded satisfaction. The decisions of the Commissioner (Appeals) and the Tribunal treating the authorisation as invalid were therefore unsustainable.

Conclusion: The requirement of section 35E(2) was satisfied on substance, and the authorisation to file the departmental appeal was valid; the issue is answered in favour of the revenue and against the assessee.

Ratio Decidendi: For an authorisation under section 35E(2) of the Central Excise Act, 1944, what is essential is recorded satisfaction with reasons showing that the order is considered illegal or improper; the use of any particular formulaic expression is not mandatory.

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