Exemption classification cannot be challenged on later expert opinion not forming part of the original adjudication record.

Revenue cannot upset an exemption and classification finding by relying on a Chief Chemist's opinion obtained after the impugned order, especially where that opinion was not part of the show cause notice or the original adjudication record. The goods had been treated as PVC compound and found eligible for the claimed notification exemption by the original authority, and no independent ground was shown to displace that finding. On that basis, the attempted reclassification as plastisol on later material was rejected and the exemption order was maintained.

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Issues: Whether the Revenue could challenge the exemption and classification granted to the respondents by relying on the Chief Chemist's opinion obtained after the impugned order, and whether any other sustainable ground existed to interfere with the order allowing exemption under the notification.

Analysis: The product was treated by the original authority as a PVC compound falling within the claimed exemption. In appeal, the Revenue sought to rely on the Chief Chemist's opinion that the goods were not commonly understood as PVC compound and were closer to plastisol. That opinion, however, had been obtained after the impugned order and had not formed part of the show cause notice or the proceedings before the original authority. The only material sought to be pressed into service was thus not part of the record on which the adjudication rested, and no independent ground was shown to disturb the finding recorded by the Additional Collector.

Conclusion: The Revenue's challenge failed, and the order granting exemption was upheld.

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