Tariff classification cannot be changed for the first time in appeal without prior notice; fresh re-classification requires a new show cause notice.

The department cannot seek a fresh tariff classification for the first time in appeal when that ground was not set out in the show cause notice or the original classification list. A new heading or sub-heading cannot be introduced before the Tribunal without prior notice to the assessee, and any re-classification must be pursued through a fresh show cause notice stating the basis for the change. The revenue's attempt to rely on sub-heading 90.31 therefore failed, and the appeal was rejected, though the department was left free to issue a proper notice and begin fresh proceedings.

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Issues: Whether the revenue could, for the first time in appeal, contend for classification of the product under a new tariff heading not proposed in the show cause notice or classification list.

Analysis: The issue turned on the settled principle that a department cannot travel beyond the basis of the show cause notice or the classification already proposed and approved. A fresh heading or sub-heading cannot be introduced for the first time before the Tribunal in the absence of prior notice to the assessee. If the department seeks a different classification, the proper course is to issue a fresh show cause notice setting out the re-classification grounds.

Conclusion: The revenue's attempt to urge a new classification under sub-heading 90.31 was not permissible and failed.

Final Conclusion: The appeal was rejected, while leaving it open to the department to initiate fresh proceedings for re-classification by a proper notice.

Ratio Decidendi: A party cannot be required to meet a new tariff classification ground raised for the first time in appeal when it was not part of the show cause notice or the original classification dispute; re-classification must be pursued through a fresh notice.

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