Show cause notice limits Revenue's case: a new factual and legal basis could not sustain the appeal.

A demand or appeal cannot be sustained on a ground wholly different from the one set out in the show cause notice. Here, the notice was limited to PVC waste arising from PVC granules, but the Revenue's review and appeal proceeded on a new basis that the waste arose from manufacture of wires and cables, involving different goods and tariff chapters. Because the Department sought to advance a factual and legal case never put to the assessee in the notice, the proceeding could not be maintained. The Revenue's appeal on the new ground was therefore rejected.

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Issues: Whether the Revenue could sustain the appeal on a ground different from the one set out in the show cause notice, and whether the impugned demand could survive when the appeal proceeded on an entirely new factual and legal basis.

Analysis: The show cause notice was confined to PVC waste generated from PVC granules, but the review order and appeal sought to challenge the matter on the footing that the waste arose from the manufacture of wires and cables. The goods and the relevant tariff chapters were different, and the Department attempted to build a case that was never put to the assessee in the notice. A proceeding cannot be sustained on a completely new ground that was not the subject matter of the original notice.

Conclusion: The Revenue's appeal was not maintainable on the new ground and was rejected.

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