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Issues:
Challenge to legality of show cause notice under Article 226 of the Constitution of India for alleged duty evasion based on service contract charges included in assessable value for excise duty calculation. Petitioners' contention that service charges are post-sale and not part of assessable value. Department's argument that evidence supports inclusion of service charges in assessable value. Analysis: The judgment pertains to a petition challenging the legality of a show cause notice issued by the Assistant Collector of Central Excise for alleged duty evasion. The notice claimed that the company had suppressed information regarding the sale of refrigerators without including maintenance charges recovered under a service contract in the assessable value for excise duty calculation. The petitioners argued that the service contract charges, related to maintenance for four years, were post-sale charges and should not be considered for excise duty levy. The Department contended that evidence suggested the service charges formed part of the assessable value, alleging that customers were compelled to enter into the service contract at the time of purchase. The Court noted that the evidence available with the Department warranted further investigation and declined to intervene under Article 226, emphasizing that the sufficiency of evidence was not for the Court to assess. The petitioners raised concerns of bias within the Department, expressing apprehension that a fair adjudication would not be provided due to the substantial amount involved in the dispute. However, the Court rejected these claims, stating that mere allegations of bias were insufficient to avoid investigation by the Department. The Court emphasized that the Department's officers held quasi-judicial powers and that the petitioners could challenge any adverse adjudication order through appropriate channels. The petitioners' request for adjudication by a specific officer was also denied, with the Court asserting that it was the Department's prerogative to assign the adjudication process. Ultimately, the Court discharged the rule with costs, rejecting the petitioners' claims and affirming the Department's assurance to provide necessary materials for the adjudication proceedings, allowing the petitioners an opportunity to present their case effectively.
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