Show cause notice under entry tax law left for merits decision where sale situs and movement of goods remained disputed.

A challenge to a show cause notice under the U.P. Entry of Goods into Local Areas Act, 2007 was not finally adjudicated in writ jurisdiction because the petitioner's objections had first to be examined by the competent authority. The dispute concerned whether sugar sales were made at the factory gate or whether selling agents introduced the goods into different local areas, thereby attracting entry tax and penalty. Although the legal issue had been addressed in earlier binding precedent, the factual determination on the situs and manner of sale remained open. The notice was therefore not quashed, and the authority was directed to decide the objections on merits by a reasoned order.

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Issues: Whether the challenge to the notice under Section 12(3) of the U.P. Entry of Goods into Local Areas Act, 2007 could be finally adjudicated in writ jurisdiction, or whether the petitioner's objections were required to be decided by the competent authority on merits.

Analysis: The controversy turned on whether the petitioner's sugar sales were effected at the factory gate or whether the selling agents introduced the goods into different local areas so as to attract entry tax and consequential penalty. The legal question had already been addressed in earlier binding precedent, but the factual position regarding the situs and manner of sale still required examination by the assessing authority. Since the impugned notice was only a show cause notice and the petitioner had not yet placed its objections before the authority, the proper course was for the authority to consider those objections and pass a reasoned order.

Conclusion: The notice was not quashed at this stage, and the petitioner's objections were directed to be decided on merits by a reasoned order.

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