The Superintendent Of Post Offices vs. Union Of INDIA.
Held
The Court held that the matter should be remanded to the original adjudicating authority for re-adjudication. This decision was based on the consent of both the Petitioners and the Respondents, following instructions received by the Respondent from the CBIC, New Delhi. The CBIC had advised remanding all cases filed by Head Post Offices under the Guntur CGST jurisdiction for re-adjudication. The Court found the issues to be superficial and focused on resolving the matter amicably between government entities. The operative direction was to set aside the impugned order dated 12.08.2022 and remand the matter back to the adjudicating authority for consideration and disposal in accordance with law. No issue was expressly left undecided.
Facts
The Petitioners, Superintendents of Post Offices in the State, challenged an order dated 12.08.2022, 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 filed an additional affidavit stating that the CBIC, New Delhi, had advised remanding all such cases filed by Head Post Offices under the 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 of service tax on the Petitioners, as contended by the Petitioners? 2. Whether the matter should be remanded to the original adjudicating authority for re-adjudication in light of the CBIC's instructions, as proposed by the Respondent and consented to by the Petitioner? Contentions of the Petitioner: The levy of service tax was opposed on the ground that it was only a book adjustment. Furthermore, the principles of natural justice were not observed. The Petitioner relied on the fact that both entities involved were limbs of the Union Government, suggesting a need for an amicable resolution. Contentions of the Revenue: The Respondent, through an additional affidavit, stated that the CBIC had advised remanding all cases filed by Head Post Offices under the Guntur CGST jurisdiction to the original authority for re-adjudication. The Respondent prayed for the Writ Petitions to be remanded for re-adjudication in light of the Board's instructions.
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HON’BLE SRI JUSTICE G.NARENDAR
AND HON’BLE SRI JUSTICE T.C.D. SEKHAR WRIT PETITION No.5061 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 12.08.2022, 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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