The Sr Superintendent Of Post Offices vs. The Union Of INDIA
Held
The Court noted that the issue involved the levy and non-payment of service tax, which was opposed on the ground of it being a book adjustment. The primary contention raised by the Petitioners was the non-observation of principles of natural justice. Given that both the Petitioners and Respondents are branches of the Union Government, the Court suggested an amicable resolution. The Respondent filed an additional affidavit stating that the CBIC had advised 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 Petitioners 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. No issue was expressly left undecided.
Facts
The Petitioners, Superintendents of Post Offices in the State, challenged an order dated 31.03.2023, 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, Principal Commissioner of Central Tax, Guntur, sought clarification from the CBIC, New Delhi. The CBIC, vide a letter dated 09.10.2024, advised the Respondent to request the High Court to remand all cases filed by Head Post Offices under the Guntur CGST jurisdiction to the original authority for re-adjudication. An additional affidavit was filed by the Respondent based on these instructions, with the Petitioners' counsel consenting to the remand.
Key Issues
1. Whether the principles of natural justice were violated in the levy of service tax on the Petitioners, particularly given that both parties are limbs of the Union Government? 2. Whether the matter should be remanded to the original adjudicating authority for re-adjudication in light of fresh instructions from the CBIC? Petitioner's Arguments: The Petitioners argued that the levy was a mere book adjustment and that the principles of natural justice were not observed. They relied on the fact that both the Petitioners and Respondents are part of the Union Government, suggesting an amicable resolution. Respondent's Arguments: The Respondent, acting on instructions from the CBIC, sought a remand of the case to the original adjudicating authority for re-adjudication, citing the CBIC's advice to do so for all similar cases filed by Head Post Offices.
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.5753 of 2024 ORDER:- (per Hon’ble Sri Justice G.Narendar)
Heard Smt. V. Hemanth Kumar, 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 31.03.2023, 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 whet
The judgment continues below.
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