The Superintendent Of Post Offices vs. Union Of INDIA
Held
The Court held that the Writ Petition should be disposed of by setting aside the impugned order and remanding the matter back to the adjudicating authority for consideration and disposal in accordance with law. This decision was based on the consent of both the Petitioners and the Respondents, following instructions received by the Respondent from the CBIC. The CBIC's letter dated 09.10.2024 advised the Respondent to request the Court to remand all cases filed by Head Post Offices falling under the Guntur CGST jurisdiction to the original authority for re-adjudication. The Court accepted this proposal, thereby disposing of the Writ Petition. No specific finding was recorded on the merits of the original levy or the violation of natural justice, as the matter was resolved through remand.
Facts
The Petitioners, Superintendents of Post Offices in the State, challenged an order dated 27.05.2022, 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 Court, noting that both parties were branches of the Union Government, suggested an amicable resolution. The Respondent, Principal Commissioner of Central Tax, 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 also consented to this remand.
Key Issues
1. Whether the levy of service tax, based on a book adjustment, was valid and in compliance with principles of natural justice, as argued by the Petitioners. 2. Whether the matter should be remanded to the original adjudicating authority for re-adjudication in light of subsequent instructions from the CBIC, as proposed by the Respondents and consented to by the Petitioners. Contentions: Petitioner: The levy was a mere book adjustment, and principles of natural justice were violated. The entities involved are limbs of the Union Government, suggesting an internal resolution. Respondent: The CBIC has advised remanding all cases filed by Head Post Offices under Guntur CGST jurisdiction to the original authority for re-adjudication. They sought a remand of the Writ Petition for this purpose.
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HON’BLE SRI JUSTICE G.NARENDAR
AND HON’BLE SRI JUSTICE T.C.D. SEKHAR WRIT PETITION No.4845 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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Reproduced from the public record of the Andhra Pradesh High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.