The Superintendent Of Post Offices vs. The Union Of INDIA
Held
The Court held that the issue involved the levy and non-payment of service tax, with the Petitioners contending it was a book adjustment and that principles of natural justice were not observed. The Respondent, based on instructions from the CBIC, New Delhi, agreed to a remand. The CBIC advised remanding all cases filed by Head Post Offices under the Guntur CGST jurisdiction to the original authority for re-adjudication. The Court accepted the consent of both parties for a remand. Accordingly, the impugned order was set aside, and the matter was remanded back to the adjudicating authority for consideration and disposal in accordance with law. No specific finding was given on the violation of natural justice or the nature of the levy, as the matter was disposed of on consent for remand.
Facts
The Petitioners, Superintendents of Post Offices in the State, challenged an order dated 31.03.2023, 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 is the Principal Commissioner of Central Tax, Guntur. The Court, noting that both parties were limbs of the Union Government and the issues appeared superficial, 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.
Key Issues
1. Whether the principles of natural justice were violated in the levy of service tax on the Petitioners? (Mixed question of law and fact) Petitioner's Contention: The Petitioners argued that the levy was a mere book adjustment and that the principles of natural justice were not observed in passing the impugned order dated 31.03.2023. They contended that as both entities were part of the Union Government, the matter should be resolved amicably. Revenue's Contention: 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 adjudicating authority for re-adjudication in light of the Board's latest instructions. The Respondent sought a remand of the Writ Petition.
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1
HON’BLE SRI JUSTICE G.NARENDAR
AND HON’BLE SRI JUSTICE T.C.D. SEKHAR WRIT PETITION No.5688 of 2024 ORDER:- (per Hon’ble Sri Justice G.Narendar)
Heard Sri V. Hemanth Kumar, 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 Sr. Standing 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 31.03.2023, 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.
2
The Court had suggested to the learned counsel for the respondents to secure instructions as to whether the issue
The judgment continues below.
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