ORIENT PAPER MILLS LTD. vs UNION OF INDIA

The Supreme Court held that the direction issued by the Central Board of Revenue regarding the classification of 'M.G. Poster paper' as 'packing and wrapping paper' was invalid, vitiating the proceedings before the Collector and the Central Government. The Court emphasized that quasi-judicial authorities must exercise their powers independently, without being controlled by external directions, as per the principles established in the Central Excises and Salt Act, 1944. Consequently, the appeals were allowed, and the matter was remitted to the Collector for a fresh decision on the classification of the paper.