Threshold confiscation notice requires reasoned satisfaction and material showing definite intent to evade tax, not mere suspicion.

At the show-cause stage, the High Court declined to interfere with detention and seizure proceedings or discharge the notice, leaving the challenge to proceed in accordance with law. The order noted that the applicant could rely on earlier authority on invocation of the confiscation provision at the threshold, including the requirement of material indicating a definite intent to evade tax and reasoned satisfaction rather than mere suspicion. No final adjudication was made on the legality of the notice, and the writ proceedings were disposed of without determining the merits.

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Issues: Whether the show-cause notice issued under the confiscation provision required interference at the stage of detention and seizure, and whether the writ applicant was entitled to discharge of the notice.

Analysis: The order noted that the matter was at the stage of show-cause notice and that the proceedings would continue in accordance with law. It also recorded that the applicant could rely upon the earlier pronouncement dealing with the circumstances in which confiscation under the confiscation provision may be invoked at the threshold, particularly where the authorities must have material indicating a definite intent to evade tax and must act on reasoned satisfaction rather than mere suspicion.

Conclusion: No final adjudication on the legality of the notice was made in this order, and the writ proceedings were disposed of while leaving the applicant to pursue the challenge in accordance with law.

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