Show cause notice limits classification disputes and bars new tariff grounds not raised in the notice.

A show cause notice forms the foundation for duty demand proceedings, so the adjudicating authority cannot decide a classification case on a basis not alleged in the notice without issuing a fresh notice. Because the notices here proceeded only on Chapter Heading 4016.99, the Tribunal could not introduce Chapter Heading 8448.00 for the first time. However, the dispute between Chapter Headings 4009.99 and 4016.99 remained unresolved, so the matter was restored for adjudication only on that limited classification question.

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Issues: Whether the Tribunal could classify the goods under Chapter Heading 8448.00 when the show cause notices proceeded only on classification under Chapter Heading 4016.99, and whether the matter should be remanded for decision on the rival classifications under Chapter Headings 4009.99 and 4016.99.

Analysis: The show cause notice is the foundation of proceedings for levy and recovery of duty, and a new case cannot be set up or decided on a footing not alleged in the notice without issuing a fresh notice. Since the notices in the present matter proceeded only on the basis of Chapter Heading 4016.99, the Tribunal could not have introduced Chapter Heading 8448.00 for the first time. At the same time, because the controversy between Chapter Headings 4009.99 and 4016.99 remained unresolved, the appropriate course was to restore the matter for adjudication on that limited question.

Conclusion: The Tribunal's classification under Chapter Heading 8448.00 could not stand, and the matter was remanded to decide only whether the goods fell under Chapter Heading 4009.99 or 4016.99.

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