The Superintendent Of Post Offices vs. Union Of INDIA
Held
The Court held that the matter should be remanded to the adjudicating authority for re-adjudication. This decision was based on the instructions received by the Respondent from the CBIC, which advised remanding all cases filed by Head Post Offices under the Guntur CGST jurisdiction. The Petitioners' counsel consented to this remand. Consequently, the impugned order dated 30.06.2022 was set aside, and the matter was remanded back to the adjudicating authority for consideration and disposal in accordance with the law. The Court did not decide on the merits of the service tax levy or the alleged violation of natural justice, as the parties agreed to a remand. No issue was expressly left undecided, as the resolution was by consent.
Facts
The Petitioners, Superintendents of Post Offices in the State, challenged an order dated 30.06.2022, 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 Respondent, Principal Commissioner of Central Tax, Guntur, filed an additional affidavit stating that the CBIC (Central Board of Indirect Taxes and Customs) advised remanding all such cases filed by Head Post Offices under Guntur CGST jurisdiction to the original authority for re-adjudication. The Petitioners' counsel consented to this course of action. The High Court noted that both entities were limbs of the Union Government.
Key Issues
1. Whether the levy of service tax, as a book adjustment, was valid and whether principles of natural justice were violated in its assessment and levy, thereby rendering the order dated 30.06.2022 liable to be set aside? Petitioner's Arguments: The Petitioners contended that the service tax levy was improper as it was a mere book adjustment and that the principles of natural justice were not followed by the adjudicating authority. They sought to have the impugned order set aside. Revenue's Arguments: The Respondent, through an additional affidavit, indicated that the CBIC had advised remanding the cases to the original authority for re-adjudication. This suggests the Revenue was amenable to a re-examination of the matter rather than defending the original order on merits.
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HON’BLE SRI JUSTICE G.NARENDAR
AND HON’BLE SRI JUSTICE T.C.D. SEKHAR WRIT PETITION No.5063 of 2024 ORDER:- (per Hon’ble Sri Justice G.Narendar)
Heard Sri. G. Arun Showri, 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 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 30.06.2022, 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.
The Court had suggested to the learned counsel for the respondents to secure instructions as to whether the issue could
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be dis
The judgment continues below.
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