The Superintendent Of Post Offices vs. The Union Of INDIA
Held
The Court held that the issue involved the levy and non-payment of service tax, which was opposed by the Petitioners on the ground of it being a book adjustment and a violation of natural justice principles. The Court, after considering the submission that both parties were limbs of the Union Government, suggested an amicable resolution. The Respondent, acting on instructions from the CBIC, New Delhi, agreed to remand all cases filed by Head Post Offices under Guntur CGST jurisdiction to the original authority for re-adjudication. The Petitioners' counsel 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. No specific issue was left undecided, as both parties consented to the remand.
Facts
The Petitioners, Superintendents of Post Offices in the State, challenged an order dated 18.02.2021, 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 Court, noting that both parties were branches of the Union Government, 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. The Petitioners' counsel consented to this remand.
Key Issues
1. Whether the levy of service tax, which was opposed on the ground of being a mere book adjustment, was validly made without observing the principles of natural justice, as contended by the Petitioners (Superintendents of Post Offices)? Petitioner's Arguments: The Petitioners argued that the levy was a book adjustment and that the principles of natural justice were not followed in passing the impugned order dated 18.02.2021. They relied on the fact that both the petitioner and respondent were government entities, suggesting a need for an amicable resolution. Revenue's Arguments: The Respondent, represented by the Principal Commissioner of Central Tax, initially opposed the levy. However, based on instructions from the CBIC, New Delhi, the Respondent agreed to the remand of the cases for re-adjudication. The Respondent relied on the advice from CBIC vide letter dated 09.10.2024.
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1
HON’BLE SRI JUSTICE G.NARENDAR
AND HON’BLE SRI JUSTICE T.C.D. SEKHAR WRIT PETITION No.7148 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 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 18.02.2021, 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 i
The judgment continues below.
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