Refund challenge limited to grounds in the show cause notice and appealed orders; new grounds cannot be introduced on appeal.

An appellate challenge to a refund cannot be maintained on a ground that was neither raised in the show cause notice nor decided in the order-in-original or the order-in-appeal. Where the Revenue did not dispute the findings actually recorded and instead sought to introduce a new basis outside the scope of the proceedings, the challenge exceeded the permissible contours of the appeal. The refund order therefore remained undisturbed and the Revenue's appeal was dismissed as not sustainable.

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Issues: Whether the Revenue could challenge the refund solely on a new ground not raised in the order-in-original or order-in-appeal, and whether such an appeal was sustainable.

Analysis: The disputed ground regarding authorization of the service provider and consequent classification as port services did not form part of the rejection basis in the adjudication order or the appellate order. The earlier orders had proceeded on different grounds, namely proof of actual payment and the nature of the services for refund under Notification No. 41/2007-ST. Since the Revenue did not assail the findings recorded by the Commissioner (Appeals) and attempted to introduce a ground that lay outside the scope of the show cause notice and the orders under challenge, the appeal exceeded the permissible contours of the proceedings.

Conclusion: The Revenue's appeal was held to be not sustainable and was dismissed.

Final Conclusion: The refund order in favour of the respondent remained undisturbed because the Revenue's challenge was rejected as being beyond the issues already adjudicated.

Ratio Decidendi: An appellate challenge cannot be maintained on a ground that was neither part of the show cause notice nor decided in the orders under appeal, particularly where the findings actually recorded are not assailed.

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