The Superintendent Of Post Offices vs. The Union Of INDIA
Held
The Court, acknowledging that both the Petitioner and Respondent were limbs of the Union Government and that the issues appeared superficial, suggested an amicable resolution. Following the CBIC's advice, as conveyed through an additional affidavit, the Court found it appropriate to remand the matter. The Court held that the impugned order dated 31.03.2023 should be set aside and the matter remanded to the adjudicating authority for fresh consideration and disposal in accordance with the law. This decision was based on the consent of both parties and the instructions received from the CBIC. The Court did not decide on the merits of the service tax levy itself, focusing solely on the procedural aspect of re-adjudication.
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, Principal Commissioner of Central Tax, Guntur, filed an additional affidavit stating that the CBIC, New Delhi, had advised remanding all cases filed by Head Post Offices under Guntur CGST jurisdiction to the original authority for re-adjudication. The learned counsel for both the Petitioners and the Respondent consented to this course of action.
Key Issues
1. Whether the levy of service tax, opposed on the ground of being a book adjustment, was validly made without observing the principles of natural justice? (Question of law and fact, concerning principles of natural justice and the validity of the levy). Contentions: Petitioner: The levy was a mere book adjustment and the principles of natural justice were not observed in passing the impugned order. Respondent: The Respondent sought clarification from the CBIC, New Delhi, and based on their advice, prayed for the writ petitions to be remanded to the original adjudicating authority for re-adjudication in light of the Board's instructions.
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1
HON’BLE SRI JUSTICE G.NARENDAR
AND HON’BLE SRI JUSTICE T.C.D. SEKHAR WRIT PETITION No.5724 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 whet
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.