Duty demand fails when confirmed on a tariff classification not alleged in the show cause notice.

A duty demand cannot be sustained where the adjudicating authority confirms liability on a tariff classification different from the one specifically alleged in the show cause notice. The notice proceeded on Heading 8479, but duty was confirmed under Heading 8445, and the appellate authority set aside the demand because an assessee must be put to notice of the precise basis of classification before liability is confirmed. The tribunal followed prior authority that a demand cannot be upheld on a heading or ground not proposed in the notice, and the assessee succeeded on that issue.

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Issues: Whether a duty demand could be sustained on a tariff classification different from the one proposed in the show cause notice.

Analysis: The demand in the notice proceeded on the footing that the goods were classifiable under Heading 8479, while the adjudicating authority confirmed duty by classifying the goods under Heading 8445. The order-in-appeal set aside the adjudication on the ground that an authority cannot confirm demand on a basis not put to notice in the show cause notice. That approach was supported by prior tribunal and Supreme Court authority holding that a demand cannot be confirmed under a tariff heading or classification not proposed in the notice.

Conclusion: The demand could not be sustained on a classification not alleged in the show cause notice, and the assessee succeeded on this issue.

Ratio Decidendi: A duty demand cannot be confirmed on a tariff classification or ground that was not specifically set out in the show cause notice.

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