The Senior 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, as conveyed through an additional affidavit filed by the Respondent. The learned counsel for the Petitioners also consented to this remand. Therefore, the impugned order dated January 31, 2023, was set aside, and the case was remanded back to the adjudicating authority for consideration and disposal in accordance with the law. The Court explicitly did not decide on the merits of the service tax levy itself, focusing solely on the procedural aspect of remand.
Facts
The Superintendents of Post Offices in the State (Petitioners) filed a Writ Petition challenging an order dated January 31, 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 was the Principal Commissioner of Central Tax, Guntur. The Court, noting that both parties were limbs of the Union Government, suggested an amicable resolution. 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.
Key Issues
1. Whether the principles of natural justice were violated in the levy of service tax on the Petitioners, contrary to the provisions of the relevant tax laws? 2. Whether the matter could be amicably resolved between the two branches of the Union Government? The Petitioners argued that the levy was a mere book adjustment and that principles of natural justice were not followed. The Respondent did not explicitly record arguments but, through an affidavit, indicated that the CBIC had advised remanding the cases for re-adjudication. The Court's prima facie opinion was that the issues were superficial and involved non-observation of natural justice principles.
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HON’BLE SRI JUSTICE G.NARENDAR
AND HON’BLE SRI JUSTICE T.C.D. SEKHAR WRIT PETITION No.7597 of 2024 ORDER:- (per Hon’ble Sri Justice G.Narendar)
Heard Smt. Divya Datla, the learned 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 31.01.2023, 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.
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 amica
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.