[Cites 3, Cited by 0]
Karnataka High Court
Blue Diamond Properties Limited vs The Commissioner Of Central Tax on 1 April, 2026
Author: S Sunil Dutt Yadav
Bench: S Sunil Dutt Yadav
-1-
NC: 2026:KHC:18026
WP No. 6222 of 2026
HC-KAR
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 1ST DAY OF APRIL, 2026
BEFORE
THE HON'BLE MR. JUSTICE S SUNIL DUTT YADAV
WRIT PETITION NO. 6222 OF 2026 (T-RES)
BETWEEN:
1. M/S. BLUE DIAMOND PROPERTIES LIMITED
NO. 12, TEMPLE COURT APARTMENTS,
3RD TEMPLE ROAD, 15TH CROSS,
MALLESHWARAM.
BANGALORE-560 003.
REPRESENTED BY DIRECTOR
... PETITIONER
(BY SRI. DR. SHEETAL BARKAR., ADVOCATE)
AND:
1. THE COMMISSIONER OF CENTRAL TAX
BENGALURU NORTH COMMISSIONERATE,
Digitally signed HMT BHAWAN, GANGA NAGAR,
by VIDYA G R
Location: HIGH BENGALURU - 560 032.
COURT OF
KARNATAKA
2. THE ASSISTANT COMMISSIONER OF CENTRAL TAX,
NORTH COMMISSIONERATE,
BENGALURU - 560 032.
... RESPONDENTS
(BY SRI. JEEVAN J. NEERALGI., ADVOCATE)
THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF
THE CONSTITUTION OF INDIA, PRAYING TO QUASHING THE
ORDER-IN-ORIGINAL NO. 238/2022-23/ST/ND4 DATED
23.12.2022 ENCLOSED AS ANNEXURE-A PASSED BY THE
-2-
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WP No. 6222 of 2026
HC-KAR
SECOND RESPONDENT AND NOTICE OF THE ORDER VIDE
DATED 19.12.2025 ENCLOSED AS ANNEXURE-B PASSED BY
FIRST RESPONDENT AND ETC.
THIS PETITION COMING ON FOR PRELIMINARY HEARING
THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE S SUNIL DUTT YADAV
ORAL ORDER
The petitioner has sought for setting aside of the
Order-in-Original at Annexure-'A' dated 23.12.2022
passed by respondent No.2 as well as the notice of the
order at Annexure-'B' dated 19.12.2025 passed by
respondent No.1.
2. It is the case of the petitioner that the
Order-in-Original is the order whereby, the adjudication
having been completed, the demand for Service Tax has
been raised in terms of the provisions of the Finance Act,
1994. It is further submitted that the proceedings were
based on the inputs received from the Central Board of
Direct Taxes [CBDT] upon Income Tax returns filed. It is
submitted that in similar cases, where proceedings under
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the Finance Act, 1994 has been initiated solely based on
the inputs from CBDT.
3. This Court, vide order dated 03.07.2024 in
W.P.No.11154/2023 and connected petitions has set aside
the order and remanded the matter for fresh consideration
making certain observations.
4. Perused the order dated 03.07.2024 passed in
W.P.No.11154/2023 and connected petitions.
5. Admittedly, the order impugned is an ex-parte
order with no reply to the show cause notice. The
petitioner has also not availed of the opportunity of
personal hearing.
6. This Court while disposing of the said petitions
by remanding it to the stage of reply to the show cause
notice had made certain observations to be kept in mind
by the concerned Officials. The observations made from
para-10 onwards reads as follows:-
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"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?
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.
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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-in-
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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."
7. In light of the stand of the petitioner and the
observations made in the order dated 03.07.2024 passed
in W.P.No.11154/2023 and connected petitions, the
impugned Order-in-Original at Annexure-'A' dated
23.12.2022 is set aside. The matter is remitted to the
stage of reply to the Show Cause Notice. The Authorities
to take note of the observations made in the order dated
03.07.2024 passed in W.P.No.11154/2023 and connected
petitions as extracted supra, in specific, to the
observations made at para-10 of the order as may be
applicable. All contentions are kept open.
8. Needless to state that the petitioner is at liberty
to make out a fresh reply to the show cause notice.
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9. The petitioner to appear before the respondent
No.2 on 04.05.2026 without waiting for any notice.
Accordingly, the petition is disposed of.
SD/-
(S SUNIL DUTT YADAV)
JUDGE
VGR
