Show cause notice limits classification disputes: a new Heading 87.07 ground could not be raised on appeal.

The Revenue could not sustain an appeal on a classification ground that was never raised in the show cause notice, because the notice proceeded only on alleged non-fulfilment of the conditions of Notification No. 162/86-C.E. The appellate attempt to introduce a new case that the goods were tipper bodies classifiable under Heading 87.07 was outside the original basis of demand. A party cannot build a fresh case at the appellate stage on a ground not alleged in the notice, so the new classification issue was not entertainable and the appeal failed.

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Issues: Whether the Revenue could sustain the appeal on a classification ground that was not raised in the show cause notice, when the notice proceeded only on the alleged non-fulfilment of the conditions of Notification No. 162/86-C.E. dated 01.03.1986.

Analysis: The show cause notice sought denial of the notification benefit only on the basis that the prescribed conditions were not satisfied. In appeal, the Revenue sought to introduce an additional case that the goods were tipper bodies classifiable under Heading 87.07. That classification issue was not part of the notice and therefore was outside the original basis of demand. A party cannot be permitted to build a fresh case at the appellate stage on a ground not alleged in the show cause notice.

Conclusion: The new classification ground could not be entertained, and the appeal failed.

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