Karnataka High Court
K K Enterprises vs The Additional/ Joint Commissioner Of ... on 18 August, 2025
Author: M.Nagaprasanna
Bench: M.Nagaprasanna
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NC: 2025:KHC:32009
WP No. 24549 of 2025
HC-KAR
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 18TH DAY OF AUGUST, 2025
BEFORE
THE HON'BLE MR. JUSTICE M.NAGAPRASANNA
WRIT PETITION NO. 24549 OF 2025 (T-RES)
BETWEEN:
K.K.ENTERPRISES,
A PROPRIETORSHIP CONCERN OF
SHRI ANAND REDDY,
SON OF MUNIREDDY,
HAVING OFFICE AT 1686,
21ST MAIN, 4TH CROSS, HSR LAYOUT,
1ST SECTOR, BENGALURU - 560 102,
EMAIL: [email protected]
MOB: +91 8971470774.
...PETITIONER
(BY SRI. PRADYUMNA HEJIB, ADVOCATE)
AND:
Digitally signed
by NAGAVENI 1. THE ADDITIONAL/ JOINT COMMISSIONER OF
Location: High CENTRAL TAX, BANGALORE SOUTH
Court of
Karnataka COMMISSIONERATE,
P.B.NO.5400, C.R.BUILDING,
QUEEN'S ROAD, BENGALURU - 560 001.
2. THE COMMISSIONER OF
CENTRAL TAX (APPEALS - I)
4TH FLOOR, TTMC-BMTC COMPLEX,
HAL AIRPORT ROAD, DOMMALURU,
BENGALURU - 560 071.
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NC: 2025:KHC:32009
WP No. 24549 of 2025
HC-KAR
3. THE ASSISTANT COMMISSIONER OF
CENTRAL TAX (ARREARS RECOVERY CELL),
P.B.NO.5400, C.R.BUILDING, QUEEN'S ROAD,
BENGALURU - 560 001.
...RESPONDENTS
(BY SRI. AKASH B.SHETTY, ADVOCATE)
THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF
THE CONSTITUTION OF INDIA PRAYING TO QUASH ORDER IN
ORIGINAL BEARING NO. BLR-SOUTH/JC/61/2021-22 (DIN 2022
0357 0000 0000 C712) DATED 16.03.2022 PASSED BY THE
FIRST RESPONDENT (ANNEXURE -A) AND ETC.,
THIS PETITION, COMING ON FOR ORDERS, THIS DAY,
ORDER WAS MADE THEREIN AS UNDER:
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 Order-in-Original bearing No. BLR-SOUTH/JC/61/2021-22 [DIN 2022 0357 0000 0000 C712] dated 16.03.2022 passed by the First Respondent [Annexure - A];
(b) Issue a writ in the nature of Certiorari or any other appropriate writ/s to quash Order-in-Appeal No. 221/2022 [DIN 2022 0657 0000 0000 F416] dated 08.06.2022 passed by the Second Respondent [Annexure
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NC: 2025:KHC:32009 WP No. 24549 of 2025 HC-KAR
(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.Akash B. Shetty, learned counsel appearing for the respondents and have perused the material on record.
3. Learned counsel for the petitioner submits that the issue in the lis stands answered by the judgment rendered by the Coordinate Bench which reads as follows:
".... .... .....
18. The Section 65-B (44) of the Finance Act 1994, defines the term 'service'. Section 65-B (51) of the Finance Act, defines taxable service as - 'taxable service' means any service on which service tax is leviable under section 66B. Section 66B of the Finance Act provides that there shall be levied a tax on the value of all services other than those specified in the Negative List.
19. Section 66D of Finance Act, 1994, provides for the negative list, while Section 93 of the Finance Act provides power to the Central Government to grant exemption for taxable service from service tax. Accordingly, unless the service is one that falls in the negative list or a notification of exemption, the same would fall within the service tax net.
20. As noticed, the earlier provision for exemption as contained in notification No.25/2012-ST dated 20.06.2012, provided for exemption from the whole of service tax as regards tax on services under Entry -4- NC: 2025:KHC:32009 WP No. 24549 of 2025 HC-KAR No.25 provided to Government, local authority by way of any activity "in relation to any function ordinarily entrusted to a municipality in relation to water supply, public health, sanitation, conservancy, solid waste management... are exempt from service tax".
21. This has been amended vide notification No. 6/2014-ST dated 11.07.2014. By virtue of the said notification, in the Mega Exemption notification No.25/2012-ST, at Entry No.25 the words "carrying any activity in relation to any function ordinarily entrusted to a municipality in relation to" were omitted. Thus this alteration in the exemption notification effected by notification No.6/2014-ST is a matter that requires interpretation in light of the agreements executed / work order issued to the successful bidders, which is essentially a factual adjudication.
22. This Court in W.P. No.19205/2022 dated 22.08.2024, while considering setting aside of the show cause notice in an identical factual matrix had declined to issue a writ as sought for while observing that the relief sought for required interpretation of work order in the context of the exemption notification and accordingly, relegated the matter to the stage of post show cause notice. There is no reason that the present writ petitions seeking setting aside of show cause notice on the ground of exemption or non-chargability to service tax are to be disposed off on different grounds.
23. The court cannot at this stage in exercise of Writ Jurisdiction intervene at the stage of issuance of show cause notice. The interpretation of the work orders/ contracts would be necessary in order to arrive at a conclusion as regards non chargeability or as regards the application of exemption notification. It is relevant to note the observations made by the Apex Court in Union of India and another v. VICCO Laboratories1, wherein it is held that the Writ Courts could interfere at the stage of show cause notice only under exceptional circumstances and when factual adjudication is warranted, the interference by the Writ Court is ruled out. The observations made are as follows:
1(2007) 13 SCC 270 -5- NC: 2025:KHC:32009 WP No. 24549 of 2025 HC-KAR "31. Normally, the writ court should not interfere at the stage of issuance of show-cause notice by the authorities. In such a case, the parties get ample opportunity to put forth their contentions before the authorities concerned and to satisfy the authorities concerned about the absence of case for proceeding against the person against whom the show-cause notices have been issued. Abstinence from interference at the stage of issuance of show-cause notice in order to relegate the parties to the proceedings before the authorities concerned is the normal rule. However, the said rule is not without exceptions. Where a show-cause notice is issued either without jurisdiction or in an abuse of process of law, certainly in that case, the writ court would not hesitate to interfere even at the stage of issuance of show-cause notice. The interference at the show-cause notice stage should be rare and not in a routine manner. Mere assertion by the writ petitioner that notice was without jurisdiction and/or abuse of process of law would not suffice. It should be prima facie established to be so. Where factual adjudication would be necessary, interference is ruled out."
24. No grounds are made out to demonstrate that the show cause notices are without jurisdiction. Even to come to such a conclusion, there must be an appreciation of the work orders / agreements entered into after awarding of the Tender, which are factual aspects and cannot be gone into in the present writ proceedings.
25. The details of the cases and the stage of adjudication are as below:
W.P.NO. NAME OF THE PETITIONER STAGE OF ADJUDICATION 16173/2023 M/s. Show Cause Notice Chamundeshwari S.C.N:80/2021/BW/AE-VI Enterprises dated 21.04.2021 8128/2021 C.V.Bhanumurthy Show Cause Notice Reddy Sl.No.88/2019-20 Addl Commr dated 11.11.2019 14140/2022 M/s. CPC & Sons Show Cause Notice Sl.No.95/2021-22/WD-4 dated 26.04.2021 -6- NC: 2025:KHC:32009 WP No. 24549 of 2025 HC-KAR 26195/2023 Kothur Natesan Show Cause Notice Soundiran SCN No. 06/2022-23 PC dated 27.04.2022 Bikkasamundra Show Cause Notice Javaregowda Kumar SCN No. 34/2021-22 dated 06.04.2021 6979/2024 M/s. Order-in-Original Manjunatheshwara OIO No.65/2021-22 dated Enterprises 29.03.2022 8073/2021 P Kavitha Show Cause Notice Sl.No.79/2019-20 (ST) dated 08.11.2019 8075/2021 P Saraswathi Show Cause Notice Sl.No.47/Commr/ST/2019 dated 08.11.2019 8081/2021 M/s. Nirmal Enviro Show Cause Notice Solutions Pvt. Ltd. SCN No.52/2019-20 dated 11.10.2019 8124/2021 P. Vittalnath Reddy Show Cause Notice Sl. No. 59/Commr/ST/2019 dated 11.11.2019 8111/2021 P. Vikramdeva Reddy Show Cause Notice SCN No.51/2019-20 dated 11.10.2019 5150/2023 M. N. Mayanna Show Cause Notice Gowda SCN No.104/2021 dated 27.04.2021 20789/2022 M. Soma Reddy Show Cause Notice SCN No.19/2021/JC/AE/ST dated 19.04.2021 21347/2023 Krishnappa Prabhakar Show Cause Notice SCN No.26/ST/2022-23 dated 27.04.2022 -7- NC: 2025:KHC:32009 WP No. 24549 of 2025 HC-KAR 8069/2021 Chandra Reddy Show Cause Notice SCN No.80/2019-20 dated 08.11.2019 27620/2023 P. Thyagarajulu Order-in-Original Reddy A.No.221/2023 dated 02.05.2023 8067/2021 M/s. Sri Ramanjaneya Show Cause Notice Swamy Prasann, HUF SCN No.49/Commr/ST/2019 dated 11.11.2019 5204/2022 R. Shankar Reddy Show Cause Notice SCN No.289/2020-21 AC-
SD5 dated 27.10.2020 21379/2021 M/s. Sri Ramanjaneya Show Cause Notice Prasanna Enterprises Sl.No.83/2019-20 (ST) Pvt. Ltd. dated 11.11.2019 P. Vijaydeva Reddy Show Cause Notice Sl.No.86/2019-20 (ST) dated 11.11.2019 17279/2021 Y.A.Dhanashekar Show Cause Notice DIN-174/2021 dated 26.04.2021 Madhu Sudhan Show Cause Notice Sl.No.35/2019-20 dated 30.01.2020 Suresha Show Cause Notice DIN No.3216/2020 dated 24.06.2020 Sake Narayana Order-in-Original Pallavi OIO No.16/2021-22 dated 26.08.2021 -8- NC: 2025:KHC:32009 WP No. 24549 of 2025 HC-KAR M/s. Order-in-Original K.P.S.Enterprises OIO No.04/2021-22 dated 20.07.2021 C. N. Ganesh Order-in-Original OIO No. 06/2021-22 Dated 18.08.2021 20899/2021 Punith Kumar K Show Cause Notice C.No.301/2021 dated 21.10.2021 & Notice No.169/2021-22 dated 22.04.2021 Niranjan Enterprises Show Cause Notice DIN No.9253/2021 dated 22.10.2021 Prasanna Kumar Shamaiah Show Cause Notice DIN No. 9199/2021 dated 15.10.2021 K O Srinivas Show Cause Notice DIN 5893/2021 dated 12.10.2021 27633/2023 Karthik N Show Cause Notice SCN No.655/2021-2409/21 dated 20.10.2021 9114/2024 Heligehalli Thimmaiah Order-in-Original Jagadish OIO No. 139/2023-24 Dated 29.02.2024 18392//202 S. Ramachandra Show Cause Notice Reddy SCN No.36/2019-20 dated 1 30.01.2020 & SCN No.34/2019 dated 27.04.2021 Chennakeshava. V Order-in-Original OIO No. 27/2020-21 Dated 05.03.2021 -9- NC: 2025:KHC:32009 WP No. 24549 of 2025 HC-KAR 8130/2021 M/s. SRP Corporation Show Cause Notice SCN No.58/2019-20 dated 11.11.2019 8127/2021 M/s. SRP Clean Show Cause Notice Enviro Engineers Pvt. SCN No.56/2019 dated Ltd. 11.11.2019 8125/2021 P. Harshavardhana Show Cause Notice Reddy SCN No.47/2019 dated 11.10.2019 18433/2021 M/s. V R Enterprises Show Cause Notice SCN No.229/2021-22 dated B S Suresh 26.04.2021 Chandranath Show Cause Notice SCN No.43/2021-22 dated 21.04.2021 B. J. Basavaraju Show Cause Notice SCN No.108/2021 dated 20.04.2021 9522/2021 M/s. N. Suresh Show Cause Notice Kumar SCN No.230/2021 dated 21.04.2021 Lakshmiga Kumar Show Cause Notice SCN No.92/2021 dated 22.04.2021 M/s. Babu Reddy Show Cause Notice SCN No.88/2020 dated 25.09.2020 M.N.Mayanna Gowda Order-in-Original OIO No. 25/2020 Dated 02.03.2021 G. Srinivasa Gowda Order-in-Original OIO No. 26/2020 H. Narase Gowda Dated 09.02.2021
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NC: 2025:KHC:32009 WP No. 24549 of 2025 HC-KAR Order-in-Original OIO No. 29/2020 Dated 23.03.2021 4495/2020 S.N.Balasubramania Show Cause Notice m SCN No. 24/2019 dated 11.10.2019 8061/2021 P. Purandhara Reddy Show Cause Notice SCN No.51/2019 dated 11.11.2019 8063/2021 M/s. Prakruthi Show Cause Notice Enterprises SCN No. 52/2019 dated 11.11.2019 8058/2021 P. Anand Vardhan Show Cause Notice Reddy SCN No. 54/2019 dated 11.11.2019 8049/2021 Vinay Kumar Show Cause Notice SCN No. 53/2019 dated 11.11.2019 8121/2021 B. M. Rukmini Show Cause Notice C. No. VI/06/38/2020 dated 16.06.2020 6345/2022 M/s. Sri. Balaji Show Cause Notice Enterprises SCN No. 88/2021-22 dated 23.04.2021 R. Venkatesh Show Cause Notice SCN No. 82/2019-20 dated 08.11.2019 10103/2023 Gangadharaswamy Order-in-Original OIO Muniyappa No.174/2022-23 dated 31.01.2023 7219/2023 M/s. Balaji Cleaning & Order-in-Appeal OIA Transport Associates No.137/2022-23
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NC: 2025:KHC:32009 WP No. 24549 of 2025 HC-KAR Dated 06.01.2023 6187/2023 M/s. RPB Enterprises Show Cause Notice SCN No. 10/2022-23 dated 04.04.2022 M/s. Bharath Kumar Enterprises Order-in-Original OIO No. 190/2022-23 Dated 28.02.2023 8070/2021 C. V. Rajnikanth Show Cause Notice Reddy SCN No. 53/2019-20 dated 11.10.2019 3387/2021 M/s. Ganesh Shankar Show Cause Notice Environmental SCN No. 5493/2020 dated Solutions Pvt. Ltd. 04.12.2020 5085/2020 M/s. Shodashi Show Cause Notice Enterprises SCN No. 97/2017-18 Dated 11.10.2019 M/s. OLN Enterprises Show Cause Notice SCN No. 15/55/2019 dated 11.11.2019 M/s. Laxmi Enterprises Show Cause Notice SCN No. 06/63/2019 Dated 13.11.2019 M/s. SPT Enterprises Show Cause Notice SCN No. 15/52/2019 M/s. Sri. Lakshmi Dated 11.11.2019 Enterprises Show Cause Notice SCN No. 15/31/2019 M/s. Dated 08.11.2019 Annapoorneshwari Enterprises Show Cause Notice SCN No.15/50/2019 Dated 11.11.2019
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NC: 2025:KHC:32009 WP No. 24549 of 2025 HC-KAR 5024/2020 M. Soma Reddy Show Cause Notice SCN No. 22/2019 Dated 11.10.2019 K. Uma Maheshwara Show Cause Notice Rao SCN No. 95/2017 Dated 11.10.2019 R. Shankar Reddy Show Cause Notice SCN No. 44/2019 Dated 11.11.2019 B.H.Anand Kumar Show Cause Notice SCN No. 96/2017 Dated 11.10.2019 Karthik N Show Cause Notice SCN No. 98/2017 Dated 11.10.2019 G. Venkataswamy Show Cause Notice Reddy SCN No. 93/2017 Dated 11.10.2019 B. J. Kumar Show Cause Notice SCN No. 16/36/2019 Dated 11.11.2019 Munilakshmamma Show Cause Notice SCN No.15/41/2019 Dated 11.11.2019
26. Taking note of the orders passed in W.P.No.19205/2022, the present writ petitions can also be disposed off. The relevant extract of the observations in the aforesaid writ petition reads as follows:
"8. After hearing the matter for sometime, the nature of contentions raised by the petitioner require not only interpretation of the work order which would be factual but also a detailed consideration of the exemption sought for by placing reliance on the notification No. 25/2012-ST.
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9. The contention whether supply of man power involved in garbage collection as well as auto tipper with condition imposed in the supply order fall within the activity of solid waste management, is a matter that requires factual appreciation after taking note of the terms of the supply order. Such exercise cannot be made by this Court in exercise of writ jurisdiction.
10. Accordingly, the matter is remanded to the stage post show cause notice. Petitioner is also at liberty to make out reply to the show cause notice within a period of 30 days from the date of receipt of certified copy of this order. All contentions of the petitioner are kept open including as referred to by this Court in the discussion made above as well as grounds made out in the writ petition. Needless to state that the petitioner is directed to make out a comprehensive reply to enable the Authority to take a considered decision. Petitioner also to place on record all necessary documents to enable the Authority to record a finding as to the nature of work being done and service rendered to the local authority by the petitioner, as well as to enable recording a finding as to whether the activity performed falls within the exemption notification as contended above.
11. Accordingly, the petition is disposed off."
27. While the writ petitions challenging validity of the show cause notice are disposed of by relegating the petitioners to the stage post show cause notice reserving liberty to file additional reply and to file reply if not already filed permitting the assessees to raise all other contentions in support of their case of being within the exemption notification or outside the service tax net, the other writ petitions raising identical grounds assailing the adjudicating order (Order-in-Original) are also allowed by setting aside the adjudicating order and relegating the assessees to the same stage of post show cause notice. Such order is passed noticing substantial contentions are raised in matters where show cause notices are assailed. To prevent passing of conflicting orders, it would be appropriate to relegate even where adjudicating orders are passed to post cause notice stage, to enable adjudication of all matters with a uniform approach as regards common legal questions raised.
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28. Insofar as the contention of the petitioners that taxable services are chargeable under the reverse charge mechanism, the notification No.30/2012-ST dated 20.06.2012 provides for "taxable services provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers to any person who is not in the similar line of business or supply of manpower for any purpose or service portion in execution of works contract by any individual, Hindu Undivided Family or partnership firm, whether registered or not, including association of persons, located in the taxable territory to a business entity registered as body corporate, located in the taxable territory" and the table at (II) of the said notification provides for extent of service tax payable by provider of service and the person who receives the service for the taxable services. Entry at Sl.No.8 provides the rates at 25% of service tax payable by the person providing service and 75% of service tax payable by the person receiving the service.
Accordingly, in light of the contention of the revenue that the receiver of service i.e., BBMP/ local authority or Government is not a business entity registered as body corporate, such aspect is also kept open for consideration by the authority upon remand of the matters to the stage of post show cause notice.
29. IN RE: W.P.NO. 7219/2023 (CHALLENGE TO ORDER PASSED BY THE APPELLATE AUTHORITY CONFIRMING ORDER-IN-ORIGINAL):
(i) The petitioner is aggrieved by the initiation of proceedings through a show cause notice bearing SCN No.83/2020 dated 29.09.2020 at Annexure-K, calling upon the petitioner to show cause "as to why payment of service tax of Rs.1,40,84,857/- for the period from October, 2014 to June, 2017 should not be demanded and recovered". Petitioner has also assailed the Order-in-
Original bearing OIO No.33/2021-22 dated 29.10.2021 at Annexure-S passed by respondent No.6 confirming the demand, petitioner has also assailed the Order-in-Appeal dated 06.01.2023 at Annexure-T passed by respondent No.7 rejecting the appeal and confirming the demand.
(ii) The facts that are made out are that the petitioner which was registered under the Service Tax as
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NC: 2025:KHC:32009 WP No. 24549 of 2025 HC-KAR a provider of taxable services of "cleaning services" was issued with notices relating to liability of service tax. It was contended that the petitioner had declared lesser turn over in their Sale Tax Returns (ST-3), which was at variance with declarations made in the Income Tax Returns and on the basis of such inputs received from the Income Tax Department, proceedings were initiated. The Department had initiated proceedings by issuance of show cause notice raising a demand with respect to service tax payable for the period from October, 2014 to June, 2017. It must be noticed that the show cause notice was adjudicated and the taxable value of the services was re- quantified and the demand of service tax was confirmed of Rs.1,11,13,488/- along with appropriate interest and penalty. The appeal was filed against the order-in-original of the Joint Commissioner of Central Tax who had adjudicated on the show cause notice. The grounds in appeal were to the effect; that the services of the petitioner provided to the Corporation / Municipality was wrongly classified as "Manpower Supply Services", instead of "Solid Waste Management / Cleaning Services"; that the services provided by the petitioner to the Municipality / Corporation is in the nature of Solid Waste Management and are non-taxable in terms of Article 243W of the Constitution and construed as exempted services.
(iii) The order-in-appeal confirmed the order-in- original by reiterating the findings that the services rendered were to be classified as "supply of manpower". It was further held that the exemption was provided at Sl. No. 25(a) of the exemption notification No.25/2012-ST which provided for exemption only as regards solid waste management and not for supply of manpower. It was observed that their supplying of manpower and equipment was to the BBMP which was utilizing the services rendered for the purpose of solid waste management.
(iv) The contention regarding liability under the reverse charge mechanism was also rejected on the ground that the relevant entry for reverse charge mechanism provided for such facility only where there was services of supply of manpower "to a business entity registered as body corporation". It was observed that the BBMP / Local Authority was not a business entity
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NC: 2025:KHC:32009 WP No. 24549 of 2025 HC-KAR registered as body corporate and accordingly, the contention of liability being imposed only on the consumer of services came to be rejected.
(v) The contention reiterated in the present writ petition are identical to the contentions raised by petitioners who have assailed the validity of the show cause notices. The petitioner in the present petition has once again contended that the petitioner does not have service tax liability as they come within the category of "exemption", that the services rendered are core solid waste management activities which fall within the exemption notification, etc.
(vi) It is to be noticed that the other writ petitions assailing the show cause notices and the order- in-original are sent back to the stage of post show cause notice. In order to ensure a consistent and uniform approach by the revenue as regards to identically placed assessees, it would be appropriate to set aside the order- in-original as well as the order-in-appeal assailed in the present petition and to remand the matter back to the stage of post show cause notice while keeping all contentions of the petitioner open. Such order is required to be passed as contentions raised in the present petition are identical to those contentions raised while assailing the show cause notices in the other writ petitions disposed off remitting the matter for adjudication keeping open all contentions.
"30. Hence the following:
ORDER
(i) In W.P.Nos.16173/2023; 8128/2021;
14140/2022; 26195/2023; 8073/2021; 8075/2021; 8081/2021; 8124/2021; 8111/2021; 5150/2023; 20789/2022; 21347/2023; 8069/2021; 8067/2021; 5204/2022; 21379/2021; 17279/2021; 20899/2021; 27633/2023; 18392/2022; 8130/2021; 8127/2021; 8125/2021; 18433/2021; 9522/2021; 4495/2020; 8061/2021; 8063/2021; 8058/2021; 8049/2021; 8121/2021; 6345/2022; 6187/2023; 8070/2021; 3387/2021; 5085/2020; 5024/2020 wherein petitioners assailing the show
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NC: 2025:KHC:32009 WP No. 24549 of 2025 HC-KAR cause notices are relegated to the stage of post show cause notice reserving liberty to file reply / additional reply permitting them to take up contentions as raised in the present writ petitions and otherwise.
(ii) In W.P.Nos.6979/2024; 27620/2023; 17279/2021; 9114/2024; 18392/2021; 9522/2021; 10103/2023; 6187/2023, the adjudicating orders (Order-in-Original) are set aside and matters are remitted to the stage of post show cause notice. Liberty is reserved to file additional reply apart from the reply, if any already submitted to the Show Cause notice, permitting the petitioners to take up contentions as raised in the present writ petitions and otherwise. All consequential proceedings pursuant to the impugned orders are set aside.
(iii) Both the sets of proceedings now being relegated to post show cause notice stage, may be withdrawn by the competent authority and assigned to common set of officers to ensure uniformity in approach. This would ensure that all assesses are treated alike and may not be subjected to different points of views of different officers.
(iv) In W.P.No. 7219/2023, the Order-in-original at Annexure-S dated 29.10.2021 as also the order- in-appeal at Annexure-T dated 06.01.2023 are set aside and the matter is remitted to the stage of post show cause notice as in order (i) above.
31. In terms of the above, the writ petitions are disposed off and all contentions of the petitioners as well as the revenue are kept open.
Copy of the order to be communicated to the Principal Chief Commissioner of Central Excise and Service to take appropriate steps to implement the above direction."
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4. In the light of the issue standing answered, I deem it appropriate to dispose the petition with the same order as is passed by the Coordinate Bench.
5. For the aforesaid reasons, the following:
ORDER
(i) Petition is allowed.
(ii) Petitioner assailing the show cause notice is relegated to the stage of post show cause notice reserving liberty to file reply/additional reply permitting it to take up contentions as raised in the present writ petition and otherwise.
(iii) The adjudicating orders (Order-in-Original) are set aside and matter is remitted to the stage of post show cause notice. Liberty is reserved to file additional reply apart from the reply, if any already submitted to the Show Cause notice, permitting the petitioner to take up contentions as raised in the present writ petition and otherwise. All consequential
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NC: 2025:KHC:32009 WP No. 24549 of 2025 HC-KAR proceedings pursuant to the impugned orders are set aside.
(iv) Both the sets of proceedings now being relegated to post show cause notice stage, may be withdrawn by the competent authority and assigned to common set of officers to ensure uniformity in approach. This would ensure that all assesses are treated alike and may not be subjected to different points of views of different officers.
(v) All contentions of the petitioner as well as the revenue are kept open.
Sd/-
(M.NAGAPRASANNA) JUDGE CBC List No.: 1 Sl No.: 374 CT:SS