Quasi-judicial classification approval requires enquiry and reasoned order when excisability is disputed under protest.

Approval of a classification list under the Central Excise Rules is a quasi-judicial function requiring enquiry, application of mind, and a reasoned order. Where an assessee disputes excisability and files the classification list under protest, the proper officer must follow the prescribed procedure, consider the relevant material, and deal with the protest before granting approval. Because the Assistant Collector did not follow that procedure before approving the classification of the waste and scrap, the approval could not be sustained. The impugned order was set aside and the matter was remanded for fresh consideration after following the prescribed procedure and giving the assessee a full opportunity to be heard.

---

---

Issues: Whether the classification of the impugned waste and scrap could be sustained when the assessee had filed the classification list under protest and the proper procedure for enquiry, approval and provisional assessment under the Central Excise Rules was not followed.

Analysis: The approval of a classification list is not a mechanical act but a quasi-judicial function requiring enquiry and application of mind. Where the assessee disputes excisability and files the classification list under protest, the proper officer is required to undertake the enquiry contemplated by the rules, consider the relevant material, and pass a reasoned order. As the record showed that the Assistant Collector did not follow the procedure under the relevant rules before approving the classification, the appellate approval could not be sustained on that footing.

Conclusion: The impugned order was set aside and the matter was remanded for fresh consideration by the Assistant Collector after following the prescribed procedure and affording full opportunity to the assessee.

---