Fiscal show cause notices face narrow writ interference, with temporary protection possible while circular applicability remains unclear.

Writ interference with a show cause notice in fiscal matters is exceptional and is generally unavailable unless the notice is wholly without jurisdiction, patently illegal, a reopening of settled law, issued after prejudging the issue, or tainted by mala fides. The article notes that these strict limits applied, and the notice challenging rejection of a drawback claim was not quashed. It also records limited interim protection: the notice was kept in abeyance for eight weeks pending clarification on whether the cited circular applies in the post-GST regime, after which the notice would either revive or be dropped.

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Issues: Whether the show cause notice challenging rejection of drawback claim deserved to be quashed, and whether limited interim protection should be granted pending clarification on the applicability of the circular in the post-GST regime.

Analysis: Writ jurisdiction to quash a show cause notice is discretionary and is ordinarily not exercised unless the notice is shown to be wholly without jurisdiction, wholly illegal, a reopening of settled law, issued after prejudging the issue, or actuated by mala fides. In fiscal matters, restraint is applied with greater rigour. On the facts, the case did not fall within any of those exceptional categories. At the same time, the controversy turned on the applicability of the cited circular after the GST regime, and the Board indicated that a clarification would be issued to resolve that controversy.

Conclusion: The show cause notice was not quashed. It was kept in abeyance for eight weeks to enable the Board to issue a clarification on the circular's applicability in the post-GST period, after which the notice would either revive or be dropped.

Final Conclusion: Judicial interference with the show cause notice was declined, but the petitioner obtained limited protective relief by way of temporary suspension of the notice pending administrative clarification.

Ratio Decidendi: A show cause notice in fiscal matters will not be quashed in writ jurisdiction unless it falls within a recognised exceptional category, though limited interim protection may be granted where a clarification on the governing circular is awaited.

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