Show cause notice limits classification findings: duty demand cannot rest on a new chapter heading outside the notice.

An adjudication cannot sustain a new classification finding if the show cause notice proposed duty only on exhaustion of an exemption limit under one chapter heading and did not seek reclassification. Here, the notice alleged that clearances under one heading had crossed the exemption threshold, but the order-in-original shifted to a different basis by classifying solar cooker parts under Chapter 70 and demanding duty on that footing. The lower appellate authority was correct that the adjudication travelled beyond the notice, so the classification finding could not be upheld and the Revenue's appeal failed.

---

---

Issues: Whether the order-in-original could sustain a finding on classification of the solar cooker parts when the show cause notice had proposed duty only on the footing that clearances under one chapter heading had crossed the exemption limit and had not proposed any reclassification of the goods.

Analysis: The demand in the show cause notice was based on the allegation that once the exemption limit had been exhausted for goods cleared under one chapter heading, the assessee could not clear goods falling under another chapter heading without duty. The notice did not contain any proposal to alter the classification of the solar cooker parts. The order-in-original, however, proceeded on a different basis by holding that the goods were classifiable under Chapter 70 and therefore duty was payable. Since this conclusion went beyond the scope of the notice, the lower appellate authority was correct in holding that the adjudication travelled outside the show cause notice.

Conclusion: The finding on classification could not be sustained as it was beyond the show cause notice, and the Revenue's appeal failed.

---