Departmental appeals require recorded satisfaction on legality and propriety before authorisation; absent that, the appeal is not maintainable.

Under section 35B(2) of the Central Excise Act, 1944, a departmental appeal is valid only if the jurisdictional Commissioner forms an opinion that the impugned order is not legal or proper, and the authorisation reflects that consideration on relevant grounds in the authorisation itself or the connected note sheet. Where no such grounds are recorded and the legality or propriety of the order is not examined, the appeal is unauthorised. On those facts, the departmental appeal was held not maintainable and the assessee succeeded.

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Issues: Whether the departmental appeal was validly authorised and maintainable when the Commissioner's authorisation did not record any consideration of the legality and propriety of the impugned order.

Analysis: Under section 35B(2) of the Central Excise Act, 1944, the jurisdictional Commissioner must form an opinion that the order sought to be appealed against is not legal or proper. The authorisation for filing the appeal must reflect that such opinion was formed on relevant grounds, either in the authorisation itself or in the connected note sheet. In the present case, no such grounds were recorded and the propriety of the order was not examined.

Conclusion: The departmental appeal was unauthorised and therefore not maintainable, and the dismissal is in favour of the assessee.

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