Additional grounds in tax appeal may be entertained without deciding merits, leaving the challenge open for final hearing.

Additional grounds of appeal may be permitted where the Tribunal considers it to do so, even if those grounds were not raised in the show cause notice, before the adjudicating authority, or in earlier appellate proceedings. The Tribunal clarified that allowing the Revenue to urge such grounds, including a challenge to Notification No. 2/95-C.E., does not amount to acceptance on merits; the substantive objections remain open for final hearing. The miscellaneous application was allowed and the matter was posted for hearing.

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Issues: Whether the Revenue should be permitted to urge additional grounds in support of the appeal, including a challenge relating to the benefit of Notification No. 2/95-C.E. dated 4-1-95.

Analysis: The request to raise additional grounds was objected to on the basis that those grounds had not been taken in the show cause notice, before the adjudicating authority, before the appellate authorities, or in the appeal before the Tribunal. The Tribunal held that it would not be in the ends of justice to shut out the grounds at the threshold, and clarified that permitting the grounds did not amount to acceptance of them on merits, which would be examined at the final hearing.

Outcome: The miscellaneous application was allowed and the matter was posted for hearing.

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