Writ interference at show cause notice stage is unwarranted where customs exemption disputes turn mainly on factual allegations.

A writ court will not interfere at the show cause notice stage where withdrawal of a customs duty exemption and recovery of duty, penalties and related amounts turns mainly on factual allegations, including alleged non-fulfilment of exemption conditions and non-production of the required installation certificate within time. The noticee must first respond before the competent authority. Objections about the necessity of documents, the relevance of information sought, and limitation may be raised at the personal hearing stage, and there was no basis to assume that relevant requests would not be considered. The challenge was rejected.

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Issues: Whether the writ court should interfere at the stage of a show cause notice seeking withdrawal of customs duty exemption and recovery of duty, penalties and other amounts.

Analysis: The notice rested on factual allegations, including alleged non-fulfilment of the conditions attached to the exemption under Notification No. 64/88-Cus. and non-production of the required installation certificate within time. The Court held that where the controversy is primarily factual, the person to whom the notice is issued must first answer the notice before the competent authority. The Court also held that objections regarding the need for documents, the relevance of information sought, and limitation could be raised before the authority at the stage of personal hearing, and there was no reason to assume that relevant requests would not be considered.

Conclusion: The writ court would not interfere at the show cause notice stage, and the challenge was rejected.

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