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Karnataka High Court
Yeldur Narayanswamy Nagabushana vs The Union Of India on 18 March, 2026
Author: S Sunil Dutt Yadav
Bench: S Sunil Dutt Yadav
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WP No. 7407 of 2026
HC-KAR
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 18TH DAY OF MARCH, 2026
BEFORE
THE HON'BLE MR. JUSTICE S SUNIL DUTT YADAV
WRIT PETITION NO. 7407 OF 2026 (T-RES)
BETWEEN:
YELDUR NARAYANSWAMY NAGABUSHANA
S/O. SHRI. Y.M.NARAYANSWAMY,
AGED ABOUT 52 YEARS,
PRESENTLY RESIDING AT NO.102,
YELDUR, SRINIVASAPURA TALUK,
YELDUR, PO YELDUR,
KOLAR DISTRICT - 563 138.
...PETITIONER
(BY SRI. HARISH V. S., ADVOCATE)
AND:
1. THE UNION OF INDIA,
Digitally signed THROUGH ITS REVENUE SECRETARY,
by VIJAYA P DEPARTMENT OF REVENUE,
Location: HIGH
COURT OF MINISTRY OF FINANCE,
KARNATAKA
128-A/ NORTH BLOCK,
NEW DELHI - 110 001.
2. THE DEPUTY COMMISSIONER OF CENTRAL TAX,
SOUTH DIVISION-4, BANGALORE SOUTH
COMMISSIONERATE,
7TH FLOOR, 'C' WING KENDRIYA SADAN,
KORAMANGALA, BANGALORE - 560 034.
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WP No. 7407 of 2026
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3. THE ASSISTANT COMMISSIONER OF CENTRAL TAX,
SOUTH DIVISION-4, BANGALORE SOUTH
COMMISSIONERATE,
7TH FLOOR, 'C' WING KENDRIYA SADAN,
KORAMANGALA, BANGALORE - 560 034.
...RESPONDENTS
(BY SRI. ARAVIND V. CHAVAN, ADVOCATE FOR R1 TO R3)
THIS WP IS FILED UNDER ARTICELS 226 AND 227 OF
THE CONSTITUTION OF INDIA PRAYING TO QUASH THE
IMPUGNED ORDER-IN-ORIGINAL, BEARING NO.481/2021 SD-
4, DATED 18.02.2022, FOR THE FINANCIAL YEAR 2015-16,
AND BEARING NO. 280/2023 SD-4, DATED 06.11.2023, FOR
THE FINANCIAL YEAR 2016-17, BOTH PASSED BY THE
RESPONDENT NO.2, I.E., ANNEXURE B AND D, RESPECTIVELY
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 challenged the Order-in-Original
at Annexures-B and D. It is the case of the petitioner that
the order of adjudication is passed on the basis of inputs
received from Central Board of Direct Taxes and this Court
under similar circumstances wherever demands for service
tax has been raised on the basis of inputs from the Income
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Tax Returns, has remitted the matter back for fresh
consideration as has been done in W.P.No.11154/2023.
2. The petitioner asserts that the service rendered
is not subject to levy of service tax as service tax is to be
borne by the recipient under the reverse charge
mechanism. It is further submitted that there are other
contentions available which would be raised if the matter
is remitted.
3. Perused the order dated 03.07.2024 passed in
W.P.No.11154/2023 and connected petitions.
4. 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:-
10. The officers while disposing off the petitions to
keep in mind the following:
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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.
13. Accordingly, the following:
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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-
original in question would also receive the same
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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."
5. In light of the above, the order of adjudication
at Annexure-B for the financial year 2015-16 and
Annexure-D for the financial year 2016-17 are set aside.
The matter is remitted to the stage of reply to show-cause
notice. The authority 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 take note of the observations at para-
10 of the order as may be applicable.
6. Petitioner is at liberty to make out a fresh reply
to the show-cause notice. Petitioner to appear before
respondents No.2 and 3 as regards the proceedings for the
relevant year, without further notice on 21.04.2026.
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7. In light of the orders being set aside, the order
of attachment of bank account to be reversed by the
authorities forthwith. All contentions are kept open.
8. I.A.No.1/2026 is allowed and the petitioner is
dispensed with production of certified copy of Annexures-
B, D and E, in light of the submission that the documents
produced are printouts taken from the portal.
9. Accordingly, petition is disposed of.
Sd/-
(S SUNIL DUTT YADAV)
JUDGE
MCR
