Small scale exemption claim may be raised on appeal when it is a pure question of law arising from established facts.

A claim for small scale exemption under Notification No. 175/86, though raised for the first time before the Tribunal, was treated as a pure question of law arising from established facts and therefore could be entertained at the appellate stage. Because the Adjudicating Authority had not examined the claim and it had not been considered on the record, fresh adjudication was required after giving the assessee an opportunity of hearing. The rival contention relating to Notification No. 180/88 was not finally determined, as the matter was remanded for reconsideration.

---

---

Issues: Whether the assessee's claim to small scale exemption under Notification No. 175/86, raised for the first time before the Tribunal, required fresh examination by the Adjudicating Authority.

Analysis: The claim for benefit under Notification No. 175/86 was treated as a question of law arising from the facts, capable of being raised at the appellate stage. Since the point had not been examined by the Adjudicating Authority and had not been considered on the record, the issue required fresh adjudication after giving the assessee an opportunity of hearing. The rival contention regarding Notification No. 180/88 was not finally decided because the matter was being remanded.

Conclusion: The claim under Notification No. 175/86 was to be examined afresh by the Adjudicating Authority, and the matter was remanded for that purpose.

Ratio Decidendi: A pure question of law arising from the established facts may be raised at the appellate stage, and where such a claim has not been considered by the original authority, remand for fresh adjudication is justified.

---