The Senior Superintendent Of Post Offices vs. The Union Of INDIA
Held
The Court took on record the additional affidavit filed by the Respondent, which was based on instructions from the CBIC, New Delhi. The affidavit proposed remanding 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 proposal. Consequently, the Court set aside the impugned order dated 25.11.2020 and remanded the matter back to the adjudicating authority for consideration and disposal in accordance with law. The Court noted that the issue of whether the levy was a book adjustment and the observance of natural justice were to be re-examined by the original authority. No specific findings were made on the merits of the original levy by the High Court.
Facts
The Superintendents of Post Offices in the State (Petitioners) filed a Writ Petition challenging an order dated 25.11.2020, 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, 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 principles of natural justice were violated in the levy and non-payment of service tax by the order dated 25.11.2020, as argued by the Petitioners. 2. Whether the levy of service tax, opposed by the Petitioners on the ground of it being a book adjustment, was valid. Contentions: Petitioner: Argued that the levy was a mere book adjustment and that the principles of natural justice were not observed. Relied on the fact that both entities were part of the Union Government, implying a need for an amicable resolution. Revenue/State: Initially opposed the Petitioners' arguments. However, based on instructions from the CBIC, New Delhi, the Respondent sought a remand of the cases to the original adjudicating authority for re-adjudication.
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HON’BLE SRI JUSTICE G.NARENDAR
AND HON’BLE SRI JUSTICE T.C.D. SEKHAR WRIT PETITION No.10434 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 25.11.2020, 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 amic
The judgment continues below.
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