Classification cannot go beyond the show-cause notice; unsustainable order remanded for fresh adjudication.

An adjudicatory order on tariff classification cannot exceed the allegations in the show-cause notice; where the first appellate authority classified goods under a heading not covered by the notice, the classification was held unsustainable. Because the merits had not been finally examined within the proper scope of the notice and the challenge to the adjudicating authority's findings remained unresolved, the matter required reconsideration. The order was therefore set aside and the case remanded for fresh adjudication within the confines of the show-cause notice, in compliance with natural justice and with liberty to adduce evidence.

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Issues: Whether the impugned classification order could travel beyond the scope of the show-cause notice and whether the matter required reconsideration by the first appellate authority.

Analysis: The dispute concerned the proper classification of the respondent's product under competing tariff headings. The show-cause notice had proceeded on the basis of Chapter Headings 73.26 and 72.14/72.16, but the first appellate authority classified the goods under Chapter Heading 7207. Since an adjudicatory order cannot travel beyond the allegations contained in the show-cause notice, the classification adopted in the impugned order was held to be unsustainable. As the findings of the adjudicating authority had also been challenged and the merits had not been finally examined within the proper scope of the notice, reconsideration was found necessary. The matter was therefore sent back for fresh adjudication in accordance with natural justice, with liberty to adduce evidence.

Conclusion: The impugned order was set aside and the matter was remanded to the first appellate authority for fresh decision within the confines of the show-cause notice.

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