Show cause notice dropped, so the appellate order based on it became unsustainable under area-based exemption disputes.

An appellate order based on a show cause notice cannot be sustained once the notice itself has been dropped and the underlying proceedings no longer survive. The dispute concerned classification and refund restrictions under area-based exemption notifications, but the record showed that the notice forming the basis of the order had been withdrawn from adjudication. In those circumstances, the impugned order was treated as unsustainable in law and was set aside, with consequential relief, if any.

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Issues: Whether the impugned appellate order could survive when the show cause notice on the basis of which the dispute arose had not been adjudicated and the proceedings were subsequently dropped.

Analysis: The dispute was founded on a show cause notice concerning classification and refund restrictions under the area-based exemption notifications. The record showed that the show cause notice had later been dropped, and the basis for sustaining the impugned order no longer remained. In that situation, the appellate order was treated as unsustainable in law.

Conclusion: The impugned order was set aside and the appeal was allowed with consequential relief, if any.

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