The Superintendent Of Post Offices vs. Union Of INDIA
Held
The Court noted that the issue involved entities that were limbs of the Union Government and that the matter appeared superficial. The primary contention raised was the non-observation of the principles of natural justice. Following discussions and an additional affidavit filed by the respondent based on instructions from the CBIC, New Delhi, the Court was informed that the CBIC had advised remanding all such cases to the original authority for re-adjudication. The learned counsel for the Petitioners also consented to this course of action. 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 on the merits of the service tax levy or the specific procedural violations alleged, as the parties agreed to a remand.
Facts
The Petitioners, Superintendents of Post Offices in the State, challenged an order dated 27.05.2022, 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. This affidavit stated that the respondent had 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 Guntur CGST jurisdiction to the original authority for re-adjudication. The learned counsel for the Petitioners also consented to this remand.
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 27.05.2022? Petitioner's Arguments: The petitioner contended that the levy was only a book adjustment and that the principles of natural justice were not observed. Revenue's Arguments: The respondent, after seeking instructions from the CBIC, New Delhi, agreed to a remand of the cases to the original adjudicating authority for re-adjudication in light of the Board's latest instructions. The respondent did not explicitly argue on the merits of the levy or the procedural fairness in the initial order, but rather consented to the proposed course of action.
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HON’BLE SRI JUSTICE G.NARENDAR
AND HON’BLE SRI JUSTICE T.C.D. SEKHAR WRIT PETITION No.5170 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 27.05.2022, 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 diss
The judgment continues below.
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