Karnataka High Court
M/S Shri V I Sonar Sons vs The Principal Commissioner Of Central ... on 7 November, 2025
Author: M.Nagaprasanna
Bench: M.Nagaprasanna
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NC: 2025:KHC-D:15257
WP No. 102357 of 2025
HC-KAR
IN THE HIGH COURT OF KARNATAKA,AT DHARWAD
DATED THIS THE 7TH DAY OF NOVEMBER, 2025
BEFORE
THE HON'BLE MR. JUSTICE M.NAGAPRASANNA
WRIT PETITION NO. 102357 OF 2025 (T-IT)
BETWEEN:
M/S. SHR. V I SONAR SONS,
(A PARTNERSHIP FIRM REGISTERED
UNDER THE INDIAN PARTNERSHIP FIRM ACT, 1932)
REPRESENTED BY ITS MANAGING PARTNER,
SRI. KRISHNA V. SONAR,
BASAVESHWARA ROAD,
SHARAF BAZAR, VIJAYAPUR - 5861 01.
...PETITIONER
(BY SRI. RAGHAVENDRA B. HANJER, ADVOCATE)
AND:
1. THE PRINCIPAL COMMISSIONER OF CENTRAL TAX,
BELGAUM COMMISSIONERATE,
NO. 71, CLUB ROAD, BELAGAVI - 590 001.
2. THE ASSISTANT COMMISSIONER OF CENTRAL,
TAX AND CENTRAL EXCISE, VIJAYAPUR DIVISION,
AFZALPUR TAKKE, VIJAYAPUR - 5861 02.
Digitally signed by
VISHAL 3. THE DEPUTY COMMISSIONER OF CENTRAL TAX
NINGAPPA
PATTIHAL AND CENTRAL EXCISE, VIJAYAPUR DIVISION,
Location: High
Court of Karnataka, VIJAYAPUR - 586 102.
Dharwad Bench, ...RESPONDENTS
Dharwad
(BY SRI. GIRISH HULMANI, ADVOCATE FOR RESPONDNET'S)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227
OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OR
ORDER OR DIRECTION IN THE NATURE OF CERTIORARI QUASHING
THE IMPUGNED THE SHOW CAUSE NOTICE BEARING NO.
IV/09/72/2021-2236180362 DATED 21.04.2021 (ANNEXURE- A)
ISSUED BY THE 3RD RESPONDENT, THE IMPUGNED ORDER-IN-
ORIGINAL BEARING OIO NO.BGM-EXCUS-000-BJP-AC-MJR-019-2023-
24 DATED 30.06.2023 / 13.07.2023 (ANNEXURE- B) PASSED BY THE
2ND RESPONDENT AND THE IMPUGNED ORDER-IN-APPEAL NO.
BEL-EXCUS-000-APP-AS-228-2024-25 DATED 28.11.2024
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NC: 2025:KHC-D:15257
WP No. 102357 of 2025
HC-KAR
(ANNEXURE- C) PASSED BY THE RESPONDENT NO.1 COMMISSIONER
OF CENTRAL TAX (APPEALS), BELGAUM IN APPEAL NO.
220/2024/BM/ST. ISSUE A WRIT OR ORDER OR DIRECTION IN THE
NATURE OF ANY WRIT BY SETTING ASIDE THE DEMAND OF SERVICE
TAX OF RS.33,87,346/- ALONG WITH INTEREST AND PENALTY OF
RS.33,87,346/- IMPOSED UNDER SECTION 78(1) OF THE FINANCE
ACT, 1994 AND ETC.,
THIS WRIT PETITION, COMING ON FOR PRELIMINARY HEARING
THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
ORAL ORDER
(PER: THE HON'BLE MR. JUSTICE M.NAGAPRASANNA) The petitioner is before this Court seeking the following prayer:
A. Issue a writ or order or direction in the nature of Certiorari quashing the impugned the Show Cause Notice bearing no. IV/09/72/2021-2236180362 dated 21.04.2021 (Annexure- A) issued by the 3rd Respondent, the impugned Order-in-Original bearing OIO No.BGM-EXCUS-000-BJP-AC-MJR-019-2023-24 dated 30.06.2023 / 13.07.2023 (Annexure- B) passed by the 2nd respondent and the impugned ORDER-in- Appeal No. BEL-EXCUS-000-APP-AS-228-2024-25 dated 28.11.2024 (Annexure- C) passed by the Respondent no.1 Commissioner of Central tax (Appeals), Belgaum in Appeal No. 220/2024/BM/ST.
B. Issue a writ or order or direction in the nature of any writ by setting aside the demand of service tax of rs.33,87,346/- along with interest and penalty of rs.33,87,346/- imposed under section 78(1) of the Finance Act, 1994. and C. Pass such other order(s) or direction(s) as deemed fit and proper in the facts and circumstances of the case in the interest of justice.
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2. Heard Sri Raghavendra B. Hanjer, learned counsel for petitioner and Sri Girish Hulmani, learned counsel for respondents.
3. Learned counsel appearing for the petitioner submits that the issue in the lis stands answered by the judgment rendered by a co-ordinate bench in the case of M/S KARNATAKA CHINMAYA SEVA TRUST VS. JOINT COMMISSIONER OF CENTRAL TAX, in W.P.No.11154/2023 AND CONNECTED MATTERS, disposed on 03.07.2024.
4. Learned counsel for the respondents would not dispute the position of law, except the fact that the matter should be remitted to the stage of the submission of reply to the show cause notice by the petitioner.
5. The co-ordinate bench in the aforesaid W.P.No.11154/2023 and connected matters, considering the entire spectrum of the law and issue, passed the following order:
"10. The officers while disposing off the petitions to keep in mind the following:
1) Whether petitioners do not qualify under Section 65B(44) of the Finance Act, 1994 ?
2) Whether services are covered under negative list?-4-
NC: 2025:KHC-D:15257 WP No. 102357 of 2025 HC-KAR
3) Whether services are covered under the exemption list under the Notification No.25/2012-ST dated 28.06.2012 or under any other applicable Notifications?
4) Whether the person is liable to remit service tax in terms of Rule 2 (1) (d) read with applicable notification?
5) Whether claims are barred by limitation in terms of the law laid down by the Apex Court ?
11. It is also clarified that disposal of present petitions must not be construed as having adjudicated any of the contentions including jurisdiction. All contentions of both sides on merits are kept open.
12. Needless to state, upon conclusion of proceedings, if any of the petitioners are still aggrieved, legal remedies are kept open. It is also clarified that wherever, replies to show-cause notice have not been made out, the same may be filed upon matter being relegated as noticed above.
13. Accordingly, the following:
ORDER In light of observations made above, the writ petitions relating to challenge to show-cause notice, such matters will stand relegated to the officers to be designated in terms of the observations made in para 8 above, at the same stage. Accordingly, such of the petitions at Sl.No.1 to 5 in Column No.1 of the table relating to challenge to show-
cause notice are disposed off.
Insofar as such writ petitions as detailed in Column 2 of the table relating to challenge to Orders-in-Original, in light of the discussion made above, the Orders-in-Original stand set aside and the matters are relegated to the Officers to be designated to be reconsidered from the stage of show-cause notice. Accordingly, such of the petitions at Sl.No.1 to 35 in Column No.2 of the table relating to challenge to Orders-in-Original are disposed off.
The petitioners who are now relegated before the authorities concerned are at liberty to file their pleadings within a reasonable time as may be fixed by the Officers concerned. Wherever the matters are pending in appeal in light of the arrangement that is made, petitioners to file a memo for withdrawal of appeal and accordingly, the orders-
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Wherever demands have been made pursuant to the impugned orders, such proceedings are also set aside."
In the light of the afore-quoted judgment of the coordinate bench and that the fact the petitioner is similarly placed, I deem it appropriate to remit the matter back to respondent No.2 - Authority.
6. For the aforesaid reasons, the following:
ORDER a. The writ petition is allowed and the matter is remitted back to respondent No.2 - Authority.
b. The show cause notice dated 21.04.2021, issued by respondent No.3, vide Annexure 'A' and impugned Order-in-Original dated 30.06.2023 / 13.07.2023, passed by respondent No.2 vide Annexure-B and the order in appeal dated 28.11.2024, passed by respondent No.1 vide Annexure-C, stand quashed.
c. The petitioner shall now submit his reply to the show cause notice dated 21.04.2021, within four weeks from the date of receipt of a copy of this order.
d. Respondent No.1 shall, from the stage of submitting reply to the show cause notice by the petitioner, -6- NC: 2025:KHC-D:15257 WP No. 102357 of 2025 HC-KAR consider the same and pass necessary orders in accordance with law, bearing in mind the afore-quoted judgment of the Co-ordinate Bench.
e. It is open to the authority to regulate its procedure and take the issue to its logical conclusion.
Ordered accordingly.
Sd/-
(M.NAGAPRASANNA) JUDGE RHR/CT-ASC List No.: 1 Sl No.: 32