Finality of accepted classification bars reclassification beyond the show cause notice in brown sugar dispute.

Where a classification list for brown sugar under sub-heading 1701.90 had been filed and accepted without appeal or amendment, that classification attained finality for the dispute. An appellate authority could not then reclassify the product in proceedings arising from a show cause notice when the tariff classification issue was not specifically raised in that notice. The tribunal held that the authority had exceeded the scope of the notice, making the Commissioner (Appeals)' order unsustainable and restoring the original demand order.

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Issues: Whether the classification declared and accepted for brown sugar could be displaced in appeal and whether the appellate authority could decide a classification issue beyond the scope of the show cause notice.

Analysis: The product had been classified by the assessee in a filed classification list as falling under sub-heading 1701.90 and that classification was accepted by the department. No appeal or amendment to that classification declaration was made, so the classification attained finality for the purpose of the dispute. The appellate authority, while dealing with a demand arising from the show cause notice, could not travel beyond the notice and determine a different tariff classification when that precise issue was not the subject matter of the notice.

Conclusion: The brown sugar could not be reclassified by the appellate authority in the present proceedings, and the order of the Commissioner (Appeals) was unsustainable. The Revenue's appeal succeeded and the original demand order was restored.

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