Territorial jurisdiction limits excise reclassification, and a consequential withdrawal of statutory facility cannot stand.

Central excise authorities could not reopen or alter a classification already approved by the proper officers having territorial jurisdiction over the manufacturing premises, because approval under the classification-list scheme rests with the officer competent for that factory's location. On that basis, the Jamshedpur authorities had no jurisdiction to revise classifications approved at the production units, and the consequent withdrawal of the Chapter X facility and direction under Rule 192 was also unsustainable.

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Issues: (i) Whether the Central Excise authorities at Jamshedpur had jurisdiction to change the classification of the goods already approved by the proper officers at the factories of production; (ii) Whether the direction withdrawing the facility under Chapter X and Rule 192 of the Central Excise Rules, 1944 was valid.

Issue (i): Whether the Central Excise authorities at Jamshedpur had jurisdiction to change the classification of the goods already approved by the proper officers at the factories of production.

Analysis: Rule 173B(2) requires the proper officer to approve the classification list after inquiry, and Rule 2(xi) defines the proper officer by reference to the jurisdiction where the producer's premises are situated. On that scheme, the authorities at Jamshedpur could not revise or alter a classification approved by the proper officers having jurisdiction over the manufacturing units at Madras, Nasik and Rajkot.

Conclusion: The Jamshedpur authorities had no jurisdiction to change the classification.

Issue (ii): Whether the direction withdrawing the facility under Chapter X and Rule 192 of the Central Excise Rules, 1944 was valid.

Analysis: Since the attempt to alter the classification itself was beyond jurisdiction, the consequential denial of the Chapter X facility and the direction under Rule 192 could not be sustained.

Conclusion: The withdrawal of the facility under Rule 192 was not valid.

Final Conclusion: The impugned order was upheld and the appeal stood dismissed, leaving the assessee undisturbed.

Ratio Decidendi: An excise authority cannot reopen or alter a classification approved by the proper officer having territorial jurisdiction over the manufacturing premises, and a consequential withdrawal of a statutory facility based on such an unauthorized reclassification is unsustainable.

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