The Superintendent Of Post Offices vs. The Union Of INDIA
Held
The Court held that the issue could be dissipated in an amicable manner, given that both the petitioner and respondent were limbs of the Union Government. The Court noted the advice from the CBIC, New Delhi, to remand all cases filed by Head Post Offices under the Guntur CGST jurisdiction to the original authority for re-adjudication. The learned counsel for the petitioner also consented to this remand. Consequently, the Court set aside the impugned order and remanded the matter back to the adjudicating authority for consideration and disposal in accordance with law. The Court did not decide the merits of the service tax levy or the violation of natural justice, as the matter was disposed of on consent for remand.
Facts
The Petitioners, Superintendents of Post Offices in the State, challenged an order dated 26.03.2021, which levied service tax. The Petitioners argued that the levy was merely a book adjustment and that principles of natural justice were not observed. The Respondents are the Principal Commissioner of Central Tax, Central Tax Commissionerate, Guntur. The Court, noting that both parties were branches of the Union Government and the issues appeared superficial, suggested an amicable resolution. The Respondent filed an additional affidavit stating that the CBIC, New Delhi, advised remanding all such cases filed by Head Post Offices under Guntur CGST jurisdiction to the original authority for re-adjudication.
Key Issues
1. Whether the levy of service tax, which the petitioner contended was a mere book adjustment, was validly imposed? 2. Whether the principles of natural justice were violated in the passing of the order dated 26.03.2021? Petitioner's Contentions: The levy was a book adjustment and principles of natural justice were not observed. The petitioner relied on the fact that both entities were part of the Union Government, suggesting a superficial dispute. Revenue's Contentions: The Respondent filed an additional affidavit based on instructions from the CBIC, New Delhi. The CBIC advised remanding all cases filed by Head Post Offices under the Guntur CGST jurisdiction to the original adjudicating authority for re-adjudication in light of the Board's latest instructions. The learned counsel for the respondent consented to the remand.
AI-generated summary — verify with the full judgment below
1
HON’BLE SRI JUSTICE G.NARENDAR
AND HON’BLE SRI JUSTICE T.C.D. SEKHAR WRIT PETITION No.7449 of 2024 ORDER:- (per Hon’ble Sri Justice G.Narendar)
Heard Sri. G. Sai Narayana Rao, learned Central Government Counsel appearing for the Superintendents of Post Offices in the State, i.e., the Petitioners herein and Sri. Y.N.Vivekananda, learned Sr. Standing Counsel representing the Principal Commissioner of Central Tax, Central Tax Commissionerate, Guntur-Respondents.
The issue involved in this Writ Petition is the levy and non- payment of service tax. The said levy was opposed on the ground that it was only a book adjustment. Thus, the matter resulted in an assessment and levy by an order, dated 26.03.2021, which order in original is impugned in the Writ Petition.
As the petitioner is also a limb of the Union Government and the issues involved were, in our prima facie opinion, appearing to be superficial. The issues involved or rather canvassed before the Court, is one of non-observation of the principles of natural justice.
2
The Court had suggested to the learned counsel for the respondents to secure instructions as to whether
The judgment continues below.
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