New tariff classification cannot be raised in appeal without factual foundation; fresh proceedings are required.

An appellate forum cannot entertain a new tariff classification theory raised for the first time in appeal where the factual foundation was never laid before the lower authorities. The dispute below was confined to the rival classifications considered at adjudication, and the Revenue could not shift to a different sub-heading at the appeal stage. The proper course for an altered classification case is to commence fresh proceedings by issuing notice in accordance with law. On that basis, the Revenue's appeal on the new classification theory was rejected and the assessee's classification prevailed.

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Issues: Whether the Revenue could seek classification of the product under a new tariff sub-heading in appeal when that case was not made out before the lower authorities.

Analysis: The dispute before the lower authorities was confined to the rival classifications considered at the adjudication stage. In appeal, the Revenue attempted to support a different classification under another sub-heading. The governing principle applied was that a party cannot be permitted to build a completely new case for the first time in appeal, since the factual foundation for such a case must be laid before the authorities below. If the Revenue wanted to pursue the altered classification, the proper course was to initiate fresh proceedings by issuing notice in accordance with law.

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

Final Conclusion: The assessee's classification prevailed, while the Revenue was left free to proceed afresh in accordance with law if so advised.

Ratio Decidendi: It is impermissible for an appellate forum to entertain a classification case that is raised for the first time in appeal without the requisite factual foundation having been laid before the lower authorities.

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