Scope of show cause notice limits duty demand; a new classification ground cannot be introduced in appeal.

The Revenue could not sustain a duty demand on a new classification basis where the show cause notice and adjudication order proceeded only on alleged non-production of proof of duty payment on chassis for claiming a concession under Notification No. 162/86-C.E., as amended. The notices did not allege that bus bodies fabricated on chassis were classifiable under Heading 87.07, and appellate proceedings could not be used to introduce an entirely new ground. An authority cannot travel beyond the scope of the show cause notice, so the impugned orders were unsustainable and the demand confirmed on the new classification ground was set aside in favour of the assessee.

---

---

Issues: Whether the Revenue could sustain an appeal and demand of duty on a classification ground that was neither stated in the show cause notice nor decided in the adjudication order.

Analysis: The demand had originally been proposed only on the footing that proof of duty payment on the chassis was not furnished for availing the concession under Notification No. 162/86-C.E., as amended. The show cause notices did not allege that the bus bodies fabricated on chassis were classifiable under Heading 87.07. The appellate proceedings were therefore being used to introduce an entirely new basis for duty demand. Since a new case cannot be made out in appeal proceedings and the authority cannot travel beyond the scope of the show cause notice, the impugned orders were unsustainable.

Conclusion: The new classification ground could not be entertained, and the demand confirmed on that basis was set aside in favour of the assessee.

---