Additional factual grounds in appeal may be entertained, and classification disputes requiring verification should be remanded for fresh decision.

An additional factual ground concerning borax usage may be raised at the appellate stage, and an appellate authority should not refuse consideration merely because it was not urged earlier. Where classification depends on unresolved factual verification, the proper course is to remit the matter for fresh adjudication after giving the parties an opportunity of hearing. The dispute was therefore left open on the factual record, with reconsideration directed on the classification issue in accordance with natural justice.

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Issues: Whether a new factual contention regarding the use of borax could be raised at the appellate stage and whether the matter required remand for verification of classification.

Analysis: The dispute turned on the assessee's claim that the goods were not to be classified as held by the lower authorities and that the factual aspect of borax usage had not been examined on merits. The appellate authority had declined to entertain the contention by relying on Rule 5 of the Central Excise (Appeals) Rules, 2001. The order held that an additional point can be raised in appeal, and that the appellate authority was not correct in refusing to consider the borax issue. Since the factual question required verification, the proper course was to set aside the impugned order and remit the matter to the original adjudicating authority for fresh decision after observing natural justice.

Conclusion: The additional factual ground was admissible at the appellate stage, and the matter was remanded for verification of borax usage and reconsideration of classification.

Final Conclusion: The assessee succeeded to the extent of obtaining a remand, with the classification dispute left open for fresh adjudication on the factual record.

Ratio Decidendi: An appellate authority cannot refuse to entertain a material additional ground merely because it was not raised earlier, and where the issue depends on factual verification, the matter should be remanded for decision after due process.

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