Natural justice in classification disputes requires prior notice of the ground relied on; undisclosed classification basis led to remand.

An adjudication based on a product classification not alleged in the show cause notice, and not disclosed to the noticee before the personal hearing, breaches natural justice because the assessee is denied an opportunity to rebut the basis of decision. The order-in-original was therefore set aside and the matter remanded to the original authority for fresh consideration. An adjudication that travels beyond the notice and rests on an undisclosed ground or classification is vitiated and cannot be sustained without proper opportunity of defence.

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Issues: Whether the order classifying the product under a heading not alleged in the show cause notice, and not put to the noticee at the personal hearing, violated the principles of natural justice and warranted remand.

Analysis: The order-in-original proceeded on a classification basis that was not alleged in the show cause notice and was not made known to the noticee before adjudication. Since the assessee had no opportunity to meet that classification, the adjudication was found to have been made behind its back and in breach of the principles of natural justice.

Conclusion: The order-in-original was set aside and the matter was remanded to the original authority for fresh consideration.

Final Conclusion: The assessee obtained a remand on the ground that the adjudication travelled beyond the show cause notice and could not be sustained without affording an opportunity of defence.

Ratio Decidendi: An adjudication that rests on a ground or classification not raised in the show cause notice, and not disclosed to the noticee for rebuttal, is vitiated for breach of natural justice and is liable to be set aside with remand.

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