Show cause notice cannot be expanded with a new factual case at appeal stage in classification disputes.

A duty demand or classification dispute must be supported by a show cause notice that states both the legal provision and the facts constituting the alleged breach; a vague notice cannot later be expanded by introducing a fresh factual foundation at the appellate stage. The department could not sustain reclassification on a basis not set out in the notice, and the new ground was therefore not maintainable. The assessee succeeded, and the order under challenge was set aside.

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Issues: Whether the department could sustain reclassification on a factual basis not set out in the notice and raise a new ground at the appellate stage.

Analysis: An assessee facing a duty demand must be told not only the provision of law invoked but also the facts said to constitute the contravention. A notice cannot remain vague on the manner of alleged breach and then be expanded later by introducing a fresh factual foundation at the appellate stage, even if the broad legal basis for classification remains the same. The assessee had been called upon to meet a case that was not originally made out in the notice.

Conclusion: The new ground could not be introduced at the appellate stage, and the department's appeal was not maintainable.

Final Conclusion: The assessee succeeded, and the order under challenge was set aside.

Ratio Decidendi: A duty demand or classification dispute cannot be sustained on a factual basis not specifically set out in the show cause notice; a fresh case cannot be introduced later at the appellate stage.

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