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 from the CBIC, New Delhi, which advised remanding all cases filed by Head Post Offices falling under the Guntur CGST jurisdiction. The learned counsel for the Petitioners consented to this remand. Consequently, the Court set aside the impugned order dated 10.06.2022 and remanded the matter back to the adjudicating authority for consideration and disposal in accordance with law. The ratio decidendi is that when both parties are governmental entities and a higher authority (CBIC) advises re-adjudication for a consistent approach, and the petitioner consents, remand is the appropriate course of action to ensure proper adjudication.
Facts
The Superintendents of Post Offices in the State (Petitioners) filed a Writ Petition challenging an order dated 10.06.2022, which levied service tax. The Petitioners contended that the levy was merely a book adjustment and that principles of natural justice were not observed. The Respondent was the Principal Commissioner of Central Tax, Central Tax Commissionerate, Guntur. The Court suggested an amicable resolution given that both parties were branches of the Union Government. The Respondent filed an additional affidavit stating that the CBIC, New Delhi, had 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.
Key Issues
1. Whether the principles of natural justice were violated in the levy of service tax on the Petitioners? (Question of law and fact) Petitioner's Contention: The levy of service tax was opposed on the ground that it was only a book adjustment and that the principles of natural justice were not observed. The Petitioners argued that as they were also a limb of the Union Government, the matter should be resolved amicably. Respondent's Contention: The Respondent, through an additional affidavit, stated that the CBIC had advised remanding all cases filed by Head Post Offices under the Guntur CGST jurisdiction to the original authority for re-adjudication. The Respondent sought the Court to remand the Writ Petitions for re-adjudication in light of the Board's instructions.
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HON’BLE SRI JUSTICE G.NARENDAR
AND HON’BLE SRI JUSTICE T.C.D. SEKHAR WRIT PETITION No.4844 of 2024 ORDER:- (per Hon’ble Sri Justice G.Narendar)
Heard Ms. Divya Datla, the learned counsel appearing for the Superintendents of Post Offices in the State-Petitioners and Mr. 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 10.06.2022, 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 dissipated in an amicable manner, as the e
The judgment continues below.
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