Classification disputes require a consistent Revenue case and fair opportunity to respond; shifting grounds justified remand.

A classification dispute was found to have proceeded on shifting Revenue bases across the show-cause notice and appellate stages, leaving the assessee without a fair opportunity to meet a consistent case. The matter was therefore remitted for fresh adjudication, with liberty to issue a new show-cause notice stating the classification case precisely and consistently and to allow response and evidence. On remand, the assessee was directed not to raise limitation. The impugned classification decision was set aside and the dispute sent back for reconsideration on a properly framed basis.

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Issues: (i) whether the classification dispute had been decided on shifting bases so that the assessee had no fair opportunity to meet the Revenue's case, and the matter required remand; (ii) whether the assessee could raise limitation on remand after issuance of a fresh show cause notice.

Issue (i): Whether the classification dispute had been decided on shifting bases so that the assessee had no fair opportunity to meet the Revenue's case, and the matter required remand.

Analysis: The order under challenge showed inconsistency between the basis adopted in the show cause notice, the Assistant Commissioner's finding, the Appellate Commissioner's reasoning, and the Tribunal's approach. In that situation, the assessee was found to have lacked a fair opportunity to meet a consistently defined Revenue case on classification. The appropriate course was therefore to remit the matter to the Assistant Commissioner, with liberty to issue a fresh show cause notice stating the Revenue's classification case precisely and consistently, and to afford the assessee an opportunity to respond and lead evidence.

Conclusion: The matter was remanded to the Assistant Commissioner for fresh consideration and, if necessary, fresh notice.

Issue (ii): Whether the assessee could raise limitation on remand after issuance of a fresh show cause notice.

Analysis: While directing remand, the order expressly stated that limitation would not be raised by the assessee in view of the facts noticed by the Court.

Conclusion: The assessee was precluded from raising limitation on remand.

Final Conclusion: The appeal succeeded, the impugned classification decision was set aside, and the dispute was sent back for fresh adjudication with a consistent Revenue stand and an opportunity of response to the assessee.

Ratio Decidendi: Where the Revenue's case on classification changes across the notice and appellate stages, resulting in prejudice to the assessee's opportunity to meet the case, remand with a fresh and consistent notice is appropriate, and the assessee may be restrained from raising limitation in the remanded proceedings where so directed.

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