Review under Section 35E(2) cannot expand beyond the original adjudication issues, making a new classification dispute unsustainable.

Section 35E(2) of the Central Excise Act, 1944 confines a Commissioner's review direction to points arising from the subordinate adjudicating authority's order. Where the original adjudication had accepted the assessee's classification and dropped the demand, a review could not validly introduce a fresh dispute on classification under Heading 1901. A review order travelling beyond the issues decided in the adjudication order, and any appellate order founded on that enlarged scope, was held unsustainable and set aside.

---

---

Issues: Whether the review order could validly direct classification of the goods under Heading 1901 when that question did not arise from the adjudication order, and whether the appellate order based on such enlarged scope was sustainable.

Analysis: Section 35E(2) of the Central Excise Act, 1944 confines the Commissioner's revisional direction to points arising out of the decision or order of the subordinate adjudicating authority. The question of classification under Heading 1901 was not a point arising from the adjudication order, which had accepted the assessee's classification and dropped the demand. A review direction introducing a new classification controversy therefore travelled beyond the statutory scope of review and beyond the basis of the original proceedings.

Conclusion: The review order and the consequential appellate order were not sustainable and were set aside, with the appeal allowed in favour of the assessee.

Final Conclusion: The decision holds that a review under Section 35E(2) cannot enlarge the controversy beyond the points arising from the original adjudication order, and any order passed on such enlarged basis is liable to be annulled.

Ratio Decidendi: A review under Section 35E(2) of the Central Excise Act, 1944 is confined to points arising out of the subordinate authority's decision or order and cannot lawfully introduce a new issue outside that scope.

---