Karnataka High Court
Sheeba Computers vs The Joint Commissioner Of Central Tax ... on 11 September, 2025
Author: M.Nagaprasanna
Bench: M.Nagaprasanna
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NC: 2025:KHC:36060
WP No. 18724 of 2025
HC-KAR
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 11TH DAY OF SEPTEMBER, 2025
BEFORE
THE HON'BLE MR. JUSTICE M.NAGAPRASANNA
WRIT PETITION NO. 18724 OF 2025 (T-RES)
BETWEEN:
SHEEBA COMPUTERS
A PROPRIETORSHIP CONCERN
REPRESENTED BY ITS PROPRIETOR
SHRI BALARAJU
S/O SHRI C.V. HANUMANTHA REDDY
AGED ABOUT 76 YEARS,
HAVING OFFICE AT NO. 148
4TH CROSS, 2ND MAIN, HAL 3RD STAGE
NEW TIPPASANDRA
BENGALURU - 560 075.
...PETITIONER
(BY SRI PRADYUMNA HEJIB, ADVOCATE)
Digitally signed
by NAGAVENI
Location: HIGH
COURT OF AND:
KARNATAKA
1. THE JOINT COMMISSIONER OF
CENTRAL TAX (IN SITU)
DIVISION-5,
BENGALURU EAST COMMISSIONERATE,
TTMC-BMTC COMPLEX
HAL AIRPORT ROAD, DOMMALURU
BENGALURU - 560 071.
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WP No. 18724 of 2025
HC-KAR
2. THE ASSISTANT COMMISSIONER OF CENTRAL TAX,
DIVISION-5,
BENGALURU EAST COMMISSIONERATE
TTMC-BMTC COMPLEX
HAL AIRPORT ROAD, DOMMALURU
BENGALURU - 560 071.
...RESPONDENTS
(BY SRI ARAVIND V.CHAVAN, ADVOCATE)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226
AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO
QUASH IMPUGNED ORDER-IN-ORIGINAL BEARING NO.
410/2022-23/DC (DIN 20230257YT0000712525) DATED
27.02.2023 (ANNEXURE - A) PASSED BY THE FIRST
RESPONDENT; (B) QUASH THE RECOVERY NOTICE BEARING
DIN 2025035700000000E4AB DATED 25.03.2025 ISSUED BY
THE SECOND RESPONDENT (ANNEXURE-B).
THIS PETITION, COMING ON FOR PRELIMINARY
HEARING IN 'B' GROUP, THIS DAY, ORDER WAS MADE
THEREIN AS UNDER:
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WP No. 18724 of 2025
HC-KAR
CORAM: HON'BLE MR. JUSTICE M.NAGAPRASANNA
ORAL ORDER
Petitioner is before this Court seeking the following
prayers:
"(a) Issue a Writ in the nature of Certiorari or any other
appropriate writ/s to quash impugned Order-in-
Original bearing No. 410/2022-23/DC [DIN
20230257YT0000712525] dated 27.02.2023
[ANNEXURE - A] passed by the First Respondent;
(b) Issue a Writ in the nature of Certiorari or any other
appropriate Writ to quash the Recovery Notice
bearing DIN 2025035700000000E4AB dated
25.03.2025 issued by the Second Respondent
[Annexure - B];
(c) Grant such other order or direction as deemed fit
in the facts and circumstances of the case in the
interest of justice."
2. Heard Sri. Pradyumna Hejib, learned counsel
appearing for the petitioner, Sri. Aravind V Chavan, learned
counsel appearing for respondents and perused the material on
record.
3. Learned counsel for the petitioner submits that the
issue in the lis is akin to what is decided by the Coordinate
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Bench in the case of KARNATAKA CHINMAYA SEVA TRUST
vs. JOINT COMMISSIONER OF CENTRAL TAX,
BENGALURU EAST1. He would submit that several of the
petitions were disposed in the same terms.
4. Learned counsel for the Revenue would not dispute
the position.
5. I, therefore, deem it appropriate to notice what the
Coordinate Bench has held in the case of KARNATAKA
CHINMAYA SEVA TRUST vs. JOINT COMMISSIONER OF
CENTRAL TAX, BENGALURU EAST supra, which reads as
follows:
"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 ?
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?
(2024) 25 Centax 382 (Kar.)
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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
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orders-in-original in question would also receive the same
treatment, i.e. be set aside as per the directions made
above.
Wherever demands have been made pursuant to
the impugned orders, such proceedings are also set
aside."
6. In the light of the submissions so made, the petition
deserves to be disposed, in the same terms as is done by the
Coordinate Bench in the judgment quoted supra.
7. For the aforesaid reasons, the following:
ORDER
a. The Writ Petition is allowed.
b. Order-in-Original bearing No.410/2022-23/DC
[DIN 20230257YT0000712525] dated
27-02-2023 [Annexure-A] passed by the 1ST
respondent and the recovery notice bearing
No.DIN 2025035700000000E4AB dated
25-03-2025 passed by the 2nd respondent
stand quashed.
c. The matter is remitted back for reconsideration
from the stage of show-cause notice afresh, to
the hands of the respondents, in accordance
with law, bearing in mind the observations
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made in KARNATAKA CHINMAYA SEVA
TRUST supra.
d. The petitioner is at liberty to file his pleadings
within a reasonable time as may be fixed by
the concerned Officer of the Revenue.
Ordered accordingly.
Sd/-
(M.NAGAPRASANNA)
JUDGE
BKP
