Excise classification must be decided by the departmental authority after hearing the assessee, with duty payable in instalments.

Classification of excisable goods was treated as a factual matter for the competent departmental authority to determine after hearing the assessee, and the prior departmental remark was not regarded as a final adjudication; the classification issue was therefore remitted to the Assistant Collector for fresh decision in accordance with law. The Court also accepted the assessee's request for reasonable time to pay the adjudicated duty and permitted payment in six monthly instalments, subject to a default condition for consecutive failures. Interim protection was vacated.

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Issues: (i) Whether the classification of the petitioner's goods under the central excise regime should be determined by the departmental authority after hearing the petitioner; (ii) whether the petitioner should be granted time to deposit the adjudicated duty amount in instalments.

Issue (i): Whether the classification of the petitioner's goods under the central excise regime should be determined by the departmental authority after hearing the petitioner.

Analysis: Classification of excisable goods is treated as a question of fact that must first be examined by the competent authority under the Act. The existing departmental remark on the classification list was not treated as a final adjudication by the Court, and the matter was directed to be heard afresh by the Assistant Collector with an opportunity of hearing to the petitioner.

Conclusion: The classification issue was remitted to the Assistant Collector for fresh decision in accordance with law after hearing the petitioner.

Issue (ii): Whether the petitioner should be granted time to deposit the adjudicated duty amount in instalments.

Analysis: The petitioner expressed readiness to pay the adjudicated amount, but sought reasonable time. The Court accepted that request as just and permitted payment over a period of six months by instalments, with a default condition attached to consecutive failures.

Conclusion: The petitioner was granted time to deposit the duty amount in six monthly instalments.

Final Conclusion: The writ petition resulted in a remand on classification and limited relief by way of instalment payment of the adjudicated duty, with the interim protection vacated.

Ratio Decidendi: Where classification under excise law requires factual determination, the competent departmental authority must decide it after affording a hearing, and the Court may also grant equitable relief for staged deposit of an adjudicated demand.

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