Limited scope of Section 35E reference barred recovery and limitation findings beyond authorised classification issue.

Section 35E authorisation confined the reference to incorrect classification, and once the Assistant Collector had already revised the classification, that issue ceased to survive. The Collector (Appeals) went beyond the specific points authorised for determination by entering into recovery and limitation questions that were not covered by the reference. A decision on matters outside the authorised scope could not support the appeal, so the limitation and recovery discussion did not survive for adjudication and the Revenue's challenge failed.

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Issues: Whether the Collector (Appeals) could decide recovery and limitation questions not covered by the Collector's authorisation under Section 35E, and whether any demand for the earlier period survived for adjudication.

Analysis: The authorisation under Section 35E was confined to the issue of incorrect classification. By the time the authorisation was issued, the Assistant Collector had already revised the classification, and the point sought to be reopened had effectively ceased to survive. The Collector (Appeals) also travelled beyond the scope of the specific points referred for determination by entering upon recovery and limitation questions not included in the authorisation. A decision rendered on matters outside the authorised scope could not sustain the appeal.

Conclusion: The limitation and recovery discussion did not survive for adjudication, and the Revenue's challenge failed.

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