Refund eligibility must be examined on the correct notification basis where a new claim was raised before appeal.

A refund claim in central excise was filed without clearly identifying the governing provision, and the show cause notice indicated that any admissible refund would have to be examined under Rule 57F(13) of the Central Excise Rules, 1944. The appellate authority could not sustain relief merely on the basis that the original adjudicating authority had gone beyond the notice, because the alternative claim under Notification No. 29/96 had not been examined by the lower authorities. The proper course was to re-examine eligibility on that notification-based ground, and the matter was remanded for fresh consideration.

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Issues: Whether the appellate authority was justified in setting aside the rejection of the refund claim on the ground that the original adjudicating authority had travelled beyond the scope of the show cause notice, and whether the matter required reconsideration of the assessee's eligibility for refund under Notification No. 29/96.

Analysis: The refund claim was filed without clearly specifying the governing provision, while the show cause notice indicated that any refund, if admissible, would have to be examined under Rule 57F(13) of the Central Excise Rules, 1944. The assessee did not establish entitlement under that rule before the adjudicating authority. The appellate authority allowed the claim only on the ground that the original authority had gone beyond the notice, without examining the alternative basis subsequently urged under Notification No. 29/96. The record showed that this new basis had not been considered by the lower authorities, and the proper course was to examine eligibility on that footing.

Conclusion: The finding that the original adjudicating authority travelled beyond the show cause notice was not accepted. The matter was required to be re-examined on the assessee's eligibility for refund under Notification No. 29/96, and the case was remanded.

Final Conclusion: The appellate order was set aside and the refund dispute was sent back for fresh consideration on the alternative notification-based claim.

Ratio Decidendi: Where a new basis for refund is raised for the first time before the appellate authority and has not been examined by the lower authorities, remand is appropriate for determination of eligibility on that basis rather than affirming relief solely on the alleged breach of the show cause notice.

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