Exemption for re-rolled steel products and notice-bound revision were upheld; new grounds could not sustain revision.

An exemption for re-rolled finished steel products was available where the order imposed no restriction limiting it to units within the State, and the later government order could not alter the position for the relevant period; the assessee therefore qualified for the exemption. Revisional action also had to stay within the grounds set out in the show cause notice, because a new basis introduced later would deny the affected party a fair opportunity to respond; the additional ground was therefore impermissible. The assessee's position was upheld on both issues.

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Issues: (i) whether the assessee, though situated outside the State, was entitled to the benefit of the exemption granted to re-rolled finished steel products; and (ii) whether the revisional authority could proceed on a ground not mentioned in the show cause notice.

Issue (i): whether the assessee, though situated outside the State, was entitled to the benefit of the exemption granted to re-rolled finished steel products.

Analysis: The exemption order granted relief to re-rolled finished products of steel re-rollers subject to the condition that tax had been levied on the raw material from which such finished products were obtained. No condition was found in the exemption order restricting the benefit to units located within the State. The later government order relied upon by the Revenue was not accepted as altering that position for the relevant period.

Conclusion: The assessee was entitled to the benefit of the exemption.

Issue (ii): whether the revisional authority could proceed on a ground not mentioned in the show cause notice.

Analysis: The power of revision was required to be exercised only on the grounds disclosed in the show cause notice. A ground introduced later would deprive the affected party of the reasonable opportunity that the notice is intended to secure. The additional basis adopted for revision was therefore impermissible.

Conclusion: The revisional authority could not sustain revision on a ground not specified in the show cause notice.

Final Conclusion: The revisions failed on both issues and the assessee's position was upheld.

Ratio Decidendi: An exemption must be applied according to its expressed conditions, and revisional action cannot rest on a ground not contained in the show cause notice.

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