Writ challenge to show cause notice held premature where exemption and assessability turned on unresolved factual questions.

A writ challenge to a demand-cum-show cause notice was held premature where the claimed exemption depended on disputed facts about the manner of packing and sale, and the assessability under Section 4A. The court noted that the adjudicatory enquiry was still pending, the petitioners had not fully cooperated, and no conclusive evidence had been placed to establish the factual basis for exemption. Because the jurisdictional facts remained unresolved and required examination on evidence by the assessing authority, the writ court declined to decide the matter at the notice stage. The petition was dismissed as not maintainable at that stage.

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Issues: Whether the writ petition challenging a demand-cum-show cause notice was premature and not maintainable at this stage, where the petitioner claimed exemption from assessment on the ground that its goods were sold by weight and were allegedly outside the scope of MRP-based levy.

Analysis: The petitioners sought to invoke the writ jurisdiction at the notice stage on the footing that the notice proceeded on mistaken facts and an incorrect understanding of the exemption under the metrology regime. The Court found, however, that the enquiry was still pending, the petitioners had not cooperated fully with the adjudicating authority, and no conclusive evidence had been placed before the Court to establish the factual basis of the claimed exemption. The Court further noted that questions relating to the applicability of the exemption, the manner of packing and sale, and the factual foundation for assessment under Section 4A were matters for the adjudicating authority to determine on evidence. In the absence of positive proof of the alleged jurisdictional facts, the writ court would not record findings at the show cause stage.

Conclusion: The writ petition was held to be not maintainable at that stage and was dismissed as premature.

Ratio Decidendi: A writ petition challenging a show cause notice is premature where disputed factual issues relating to exemption and assessability remain to be examined in adjudication and the assessee has not produced the evidence necessary to establish the claimed exemption.

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