Show-cause notice stage review is limited; objections, evidence, and all defences must be decided on merits.

Interference under Article 226 at the show-cause notice stage is ordinarily unwarranted because the notice only invites objections and the adjudicating authority must consider them in the first instance, leaving statutory appellate remedies available thereafter. A noticee may file objections and produce evidence, and the authority issuing the notice must decide all contentions on merits after granting a hearing. Questions whether the goods fell under Rule 57F(4) or Rule 57F(2), and whether the demand under Rule 9(2) read with Section 11A of the Central Excises and Salt Act, 1944 was sustainable, were left to the competent authority. The notice was not quashed, but the appellant was permitted to file objections and obtain a merits-based adjudication.

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Issues: Whether the High Court should interfere at the stage of a show-cause notice and whether the adjudicating authority must consider all objections, evidence, and contentions raised in reply, including the applicability of Rule 57F(2) or Rule 57F(4).

Analysis: Interference under Article 226 at the show-cause stage is ordinarily unwarranted because the notice only invites objections and the adjudicating authority must decide them in the first instance, with statutory appellate remedies remaining available thereafter. A noticee is entitled to file objections and produce evidence in support of the defence, and the authority issuing the notice is bound to consider all objections and decide them on merits. In that setting, the controversy whether the goods fell within Rule 57F(4) or Rule 57F(2), and whether the duty demand under Rule 9(2) read with Section 11A of the Central Excises and Salt Act, 1944 was sustainable, was left for adjudication by the competent authority.

Conclusion: The writ appeals succeeded only to the extent of securing directions that the appellant could file objections within 30 days and that the adjudicating authority must grant hearing, permit production of evidence, and decide all contentions on merits. The refusal to quash the show-cause notice was maintained, and the order of the learned single Judge stood modified accordingly.

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