Classification cannot rest on a ground outside the show-cause notice; reassessment requires fair hearing and fresh adjudication.

A classification demand cannot be sustained on a ground not proposed in the show-cause notice, because the assessee must receive an effective opportunity to meet the basis of the proposed reassessment. Here, the adjudication proceeded under Chapter 28 even though the notices alleged a different tariff heading, so the demand was held unsustainable on that basis and the matter required reconsideration. The impugned order was set aside and the dispute was remitted for fresh adjudication after a reasonable hearing.

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Issues: Whether the adjudicating authority could sustain classification of the goods under Chapter 28 when the show-cause notices proposed classification under a different tariff heading, and whether the matter required reconsideration.

Analysis: The notices called upon the assessee to meet a proposed classification under one heading, but the adjudication proceeded on a different classification under Chapter 28. Since no notice was issued proposing that reclassification, the assessee was not afforded an effective opportunity to meet that basis of demand. In such a situation, the adjudication could not be sustained without fresh consideration after hearing the assessee.

Conclusion: The reassessment made on a ground not proposed in the notices could not stand, and the matter had to be reconsidered afresh after granting a reasonable opportunity of hearing.

Final Conclusion: The appeal succeeded to the extent that the impugned order was set aside and the dispute was sent back for fresh adjudication.

Ratio Decidendi: A demand or classification cannot be upheld on a ground that was not put to notice in the show-cause notice, and any such adjudication requires fresh decision after fair hearing.

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