Classification cannot rest on a ground not raised in the show cause notice, as the assessee must have an opportunity to contest it.

Classification under Tariff Heading 3005.00 could not be sustained where that heading was not raised in the show cause notice or in the original adjudication. The notice proposed only Heading 3003.19, and the original authority accepted Heading 3003.20; introducing a new classification in review deprived the assessee of notice and an opportunity to meet the case. An adjudication based on a ground not communicated to the assessee is procedurally unsound, so the impugned classification order was set aside.

---

---

Issues: Whether the Collector (Appeals) could sustain classification of the goods under Tariff Heading 3005.00 when that classification was not the subject matter of the show cause notice or the original adjudication.

Analysis: The show cause notice proposed classification only under Heading 3003.19, while the original authority accepted classification under Heading 3003.20. The Revenue introduced Heading 3005.00 for the first time in review proceedings under Section 35E of the Central Excise Act, and the assessee had not been put to notice on that proposed classification. A classification decided on a ground not communicated to the assessee cannot be sustained, as the assessee is denied an opportunity to meet that case.

Conclusion: The classification under Heading 3005.00 could not be upheld and the impugned order was liable to be set aside.

---