Customs classification cannot rest on a new ground in appeal when the show cause notice relied on a different basis.

Revenue cannot introduce a new classification basis in appeal if that ground was not raised in the show cause notice. The dispute over PVC key cases and PVC pouches turned on classification: the notice treated the goods as parts of travel goods, while the appellate argument shifted to articles ordinarily carried in the pocket or handbag under the HSN explanatory notes to Chapter 42. Because the appeal proceeded on a different basis from the notice, the new ground was not permitted. The classification order in favour of the assessee was upheld and the Revenue's appeals were rejected.

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Issues: Whether the Revenue could urge a new classification basis in appeal when that ground was not taken in the show cause notice.

Analysis: The dispute concerned classification of PVC key cases and PVC pouches. The show cause notice proposed classification on the footing that the goods were parts of travel goods, whereas the appeal before the Tribunal proceeded on a different basis, namely that the goods were articles ordinarily carried in the pocket or handbag under the HSN explanatory notes to Chapter 42. The appellate ground was therefore not the same as the ground originally invoked in the notice.

Conclusion: Fresh grounds not raised in the show cause notice could not be introduced for the first time in appeal. The Revenue's appeals were rejected and the classification order in favour of the assessee was upheld.

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