Exemption denial must match the Revenue's pleaded case; a demand cannot stand on a new ground raised by the Tribunal.

An adjudicatory authority cannot deny an exemption on a ground different from the one consistently pleaded by the Revenue and contested by the assessee. The exemption notification under Rule 8(1) covered prepared or preserved foods falling under Item 1B of the First Schedule, subject to specified exclusions. The Revenue's pleaded case was that the product was a starch-based preparation outside the exemption, but the Tribunal rejected that basis and instead treated it as flour-based. That approach was beyond competence because a fiscal demand cannot be sustained on a case never made by the Revenue. Once the pleaded ground failed, the assessee was entitled to the exemption and relief.

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Issues: Whether the Tribunal could deny exemption by proceeding on a basis different from the case consistently set up by the Revenue, and whether the appeal had to succeed once the Revenue's pleaded ground failed.

Analysis: The exemption notification issued under Rule 8(1) exempted prepared or preserved foods falling under Item 1B of the First Schedule, except the specified items in the annexed Schedule. The Revenue's case throughout was that the product was a preparation with a basis of starch and therefore outside the exemption. The Tribunal, however, rejected that basis and proceeded on a different footing, treating the product as a preparation with a basis of flour. A tribunal cannot sustain a revenue demand on a case that was never made by the Revenue and that the assessee was never required to meet.

Conclusion: The Tribunal acted beyond its competence in upholding the denial of exemption on a ground not raised by the Revenue. The appeal succeeds and the assessee is entitled to relief.

Ratio Decidendi: An adjudicatory authority cannot uphold a fiscal demand on a ground wholly different from the one pleaded and contested, and once the pleaded basis fails, the assessee is entitled to the benefit of the exemption.

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