[Cites 4, Cited by 0]
Karnataka High Court
C.M. Mahadev vs The Assistant Commissioner Of Central ... on 26 March, 2026
Author: S.Sunil Dutt Yadav
Bench: S.Sunil Dutt Yadav
-1-
NC: 2026:KHC:17214
WP No. 9628 of 2026
HC-KAR
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 26TH DAY OF MARCH, 2026
BEFORE
THE HON'BLE MR. JUSTICE S SUNIL DUTT YADAV
WRIT PETITION NO. 9628 OF 2026 (T-RES)
BETWEEN:
1. C.M. MAHADEV,
S/O. CHANDRASHEKAR,
AGED ABOUT 51 YEARS,
RESIDENT OF NO.2953/E,
2ND FLOOR, OPP MARUTHI MANDIR,
SERVICE ROAD, VIJAYANAGAR,
BANGALORE -560 040
... PETITIONER
(BY SRI. RAMA MURTHY R., ADVOCATE)
AND:
1. THE ASSISTANT COMMISSIONER OF CENTRAL TAX,
WEST DIVISION -2,
BANGALORE WEST COMMISSIONERATE,
Digitally signed
by VIJAYA P 1ST FLOOR, TTMC COMPLEX,
Location: HIGH BMTC BUS STAND, BANASHANKARI,
COURT OF
KARNATAKA BANGALORE-560 070
... RESPONDENT
(BY SRI. ARAVIND V. CHAVAN., ADVOCATE)
THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE
CONSTITUTION OF INDIA, PRAYING TO QUASH THE ORDER-IN-
ORIGINAL IN NO. 25/2024-25/S-TAX/WD-2 AS (ANNEXURE-F) DTD.
15.05.2024 PASSED BY THE 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
-2-
NC: 2026:KHC:17214
WP No. 9628 of 2026
HC-KAR
ORAL ORDER
Sri. Aravind V. Chavan, learned counsel accepts
notice for respondent.
2. Petitioner has called in question the validity of
the order-in-original at Annexure-F.
3. It is submitted that the order-in-original is
passed solely on the basis of inputs received from the
Central Board of Direct Taxes (CBDT) and this Court in
identical matters including in W.P.No. 11154/2023 where
proceedings under the Finance Act have concluded under
the order raising demand of service tax solely on the basis
of inputs from the CBDT, has set aside the order and
remitted the matter for reconsideration after making
certain observations. It is submitted that a similar order
may be passed in the present matter also.
4. It is further submitted that as the Authority has
not considered all contentions and if an opportunity is
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given, petitioner would demonstrate and meet the grounds
raised in the show cause notice.
5. Perused the order dated 03.07.2024 passed in
W.P.No.11154/2023 and connected petitions.
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:-
"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?
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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.
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HC-KAR
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
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. Accordingly, the Order-in-Original at
Annexure-F dated 15.05.2024 is set aside. The matter is
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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 at para-10 of the order as may be
applicable.
8. In light of setting aside of the order at
Annexure-F, respondent - Authorities to rescind
instructions of attachment of bank account forthwith.
9. Needless to state, the petitioner is at liberty to
make out fresh reply to the show cause notice. Petitioner
to appear before respondent on 27.04.2026 without
waiting for any notice. All contentions are kept open.
10. Accordingly, the petition is disposed of.
Sd/-
(S SUNIL DUTT YADAV)
JUDGE
VP
