Karnataka High Court
Encomium Pr Media Private Limited vs Assistant Commissioner Of Central Tax on 10 July, 2024
Author: S Sunil Dutt Yadav
Bench: S Sunil Dutt Yadav
-1-
NC: 2024:KHC:26587
WP No. 628 of 2024
C/W WP No. 22017 of 2022
WP No. 6765 of 2023
AND 17 OTHERS
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 10TH DAY OF JULY, 2024
BEFORE
THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV
WRIT PETITION NO. 628 OF 2024 (T-RES)
C/W
WRIT PETITION NO. 22017 OF 2022 (T-RES)
WRIT PETITION NO. 6765 OF 2023 (T-RES)
WRIT PETITION NO. 19943 OF 2023 (T-RES)
WRIT PETITION NO. 22946 OF 2023 (T-RES)
WRIT PETITION NO. 23317 OF 2023 (T-RES)
WRIT PETITION NO. 26201 OF 2023 (T-RES)
WRIT PETITION NO. 27259 OF 2023 (T-RES)
WRIT PETITION NO. 1863 OF 2024 (T-RES)
WRIT PETITION NO. 3523 OF 2024 (T-RES)
WRIT PETITION NO. 7608 OF 2024 (T-RES)
Digitally
signed by WRIT PETITION NO. 8299 OF 2024 (T-RES)
VIDYA G R
Location: WRIT PETITION NO. 9674 OF 2024 (T-RES)
HIGH COURT
OF
KARNATAKA WRIT PETITION NO. 14354 OF 2024 (T-RES)
WRIT PETITION NO. 16020 OF 2024 (T-RES)
WRIT PETITION NO. 16309 OF 2024 (T-RES)
WRIT PETITION NO. 16623 OF 2024 (T-RES)
WRIT PETITION NO. 17141 OF 2024 (T-RES)
WRIT PETITION NO. 18106 OF 2024 (T-RES)
WRIT PETITION NO. 18151 OF 2024 (T-RES)
-2-
NC: 2024:KHC:26587
WP No. 628 of 2024
C/W WP No. 22017 of 2022
WP No. 6765 of 2023
AND 17 OTHERS
IN W.P. NO.628 OF 2024
BETWEEN:
THAMANENI VENKATAREDDY
S/O T ESHWARA REDDY
AGED ABOUT 43 YEARS
14TH CROSS, SUBHASH NAGAR
KYATHASANDRA
TUMKUR - 572 104.
... PETITIONER
(BY SRI K.M. SHIVAYOGISWAMY, ADVOCATE)
AND:
THE ASSISTANT COMMISSIONER
OF CENTRAL TAX
BANGALORE NORTH WEST
DIVISION -5, 67/2, SGR COMPLEX
RING ROAD,
TUMKUR - 572 105.
... RESPONDENT
(BY SRI JEEVAN J NEERALGI, ADVOCATE)
THIS W.P. FILED UNDER ARTICLES 226 AND 227 OF THE
CONSTITUTION OF INDIA, PRAYING TO SET ASIDE THE
IMPUGNED ORDER PASSED BY THE RESPONDENT, BEARING
NO. GEXCOM/AE/VRFN/TPD/111/2021-CGST-RAGE-E ORDER
SL.NO.48/23-24 DIN-20231057YXOOOO323923 DTD OF ISSUE
27.10.23 DATE OF PASSING 31.10.23 VIDE ANNEXURE-H AND
ETC.
IN W.P. NO.22017 OF 2022
BETWEEN:
1 . C NARAYANA
S/O CHIKKAMARIYAPPA
-3-
NC: 2024:KHC:26587
WP No. 628 of 2024
C/W WP No. 22017 of 2022
WP No. 6765 of 2023
AND 17 OTHERS
AGED ABOUT 51 YEARS
CLASS-1 CONTRACTOR
ALKERE, YALIYURU POST
B H ROAD, HUTHRIDURGA HOBLI
KUNIGAL TALUK
TUMKUR-572 130
... PETITIONER
(BY SRI K M SHIVAYOGISWAMY, ADVOCATE)
AND:
1. UNION OF INDIA
DEPARTMENT OF REVENUE
MINISTRY OF FINANCE
REPRESENTED BY ITS
FINANCE SECRETARY
NORTH BLOCK
NEW DELHI-110 000
2. THE COMMISSIONER OF CENTRAL GST
BANGALORE NORTH-WEST COMMISSIONERATE
2ND FLOOR, SOUTH WING
BMTC BUS STAND COMPLEX
SHIVAJINGAR
BANGALORE-560 051
3. ADDITIONAL COMMISSIONER OF CENTRAL TAX
CENTRAL EXCISE AND SERVICE TAX
GOODS AND SERVICE TAX COMMISSIONERATE
BANGALORE NORTH-WEST
2ND FLOOR, SOUTH WING
BMTC BUS STAND COMPLEX
SHIVAJINAGAR
BANGALORE-560 051
... RESPONDENTS
(BY SRI ARAVIND V. CHAVAN, ADVOCATE)
-4-
NC: 2024:KHC:26587
WP No. 628 of 2024
C/W WP No. 22017 of 2022
WP No. 6765 of 2023
AND 17 OTHERS
THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF
THE CONSTITUTION OF INDIA, PRAYING TO SET ASIDE THE
IMPUGNED EX-PARTE ORDER PASSED BY THE R-3 BEARING
NO.GEXCOM/ADJN/ST/ADC/1432/2021/ADJN.BNW/3522/22/
ORDER SL.NO.43/ADC/BNW/2022/BNW DTD 26.09.2022 VIDE
ANNEXURE-M AND ETC.
IN W.P. NO.6765 OF 2023
BETWEEN:
1. OBULREDDY GANGIREDDY
S/O GANGIREDDY
AGED ABOUT 51 YEARS
(PROP: M/S. CHAITRA ENTERPRISES)
#7, KHATA NO.226/54/2C,
5TH CROSS, GROUND FLOOR
UDAYANAGAR KAVERI ROAD,
B. NARAYANPURA
BANGALORE - 560 016.
... PETITIONER
(BY SRI. K M SHIVAYOGISWAMY., ADVOCATE)
AND:
1. THE ASSISTANT COMMISSIONER OF CENTRAL TAX
GST COMMISSIONERATE,
BANGALORE EAST, DIVISION-6,
2ND FLOOR, BMTC BUS STAND,
HAL AIRPORT ROAD
DOMMALURU
BENGALURU - 560 071.
... RESPONDENT
(BY SRI. ARAVIND V. CHAVAN, ADVOCATE)
-5-
NC: 2024:KHC:26587
WP No. 628 of 2024
C/W WP No. 22017 of 2022
WP No. 6765 of 2023
AND 17 OTHERS
THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF
THE CONSTITUTION OF INDIA, PRAYING TO SET ASIDE THE
IMPUGNED EX-PARTE ORDER PASSED BY THE RESPONDENT
BEARING NO.GEXCOM/ADJN/ST/ADC/4083/2022-TECH-CGST-
DIV-6-COMMRTE -BENGALURU (E) DIN-20230257YT0600444
DIC ORDER IN-ORIGINAL NO.103/2022-23 DATED 14.02.2023
VIDE ANNEXURE ''C'' AND ETC.
IN W.P. NO. 19943 OF 2023
BETWEEN:
1. SRINIVAS PERAMACHI GOUNDAR
S/O PEREAMACHI
AGED ABOUT 55 YEARS
IST FLOOR, WARD NO.33
BEHIND BPCL PETROL BUNK, NH-4,
KYATHASANDRA
TUMKUR -572 103
... PETITIONER
(BY SRI. K M SHIVAYOGISWAMY., ADVOCATE)
AND:
1. THE ASSISTANT COMMISSIONER OF CENTRAL TAX
BANGALORE NORTH WEST DIVISION-5
67/2, SGR COMPLEX, RING ROAD
TUMKUR-572 105
... RESPONDENT
(BY SRI. AKASH B SHETTY., ADVOCATE)
THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF
THE CONSTITUTION OF INDIA, PRAYING TO SET ASIDE THE
IMPUGNED EX-PARTE ORDER PASSED BY THE RESPONDENT IN
RELATION TO THE PERIOD 2016-17 BEARING
NO.GEXCOM/AE/VRFN/TPD/1966/2021-D5 ORDER SL.NO.20/
-6-
NC: 2024:KHC:26587
WP No. 628 of 2024
C/W WP No. 22017 of 2022
WP No. 6765 of 2023
AND 17 OTHERS
2023-24 DIN NO.20230857YX000031843B DTD 01.08.2023
VIDE ANNEXURE-B AND ETC.
IN W.P. NO.22946 OF 2023
BETWEEN:
SRI RAGHUNATH VASANTH KUMAR
S/O V.S. RAGHUNATH
CLASS 1 CONTRACTOR
AGED ABOUT 60 YEARS
RAJENDRA PRASAD ROAD
HARIYABBE, HIRIYUR
CHITRADURGA - 577 598.
... PETITIONER
(BY SRI HEMAKUMAR K., ADVOCATE)
AND:
1. THE ADDITIONAL COMMISSIONER OF
CENTRAL TAX
OFFICE OF THE COMMISSIONER OF
CENTRAL TAX, SECOND FLOOR
SOUTH WING
SHIVAJINAGAR BMTC COMPLEX,
BANGALORE - 560 051.
2. THE JOINT COMMISSIONER OF
CENTRAL TAX
OFFICE OF THE COMMISSIONER OF
CENTRAL TAX, SECOND FLOOR
SOUTH WING
SHIVAJINAGAR BMTC COMPLEX
BANGALORE - 560 051.
... RESPONDENTS
(SRI ARAVIND V. CHAVAN, ADVOCATE FOR R1 & R2)
THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF
THE CONSTITUTION OF INDIA, PRAYING TO ISSUE A WRIT OF
-7-
NC: 2024:KHC:26587
WP No. 628 of 2024
C/W WP No. 22017 of 2022
WP No. 6765 of 2023
AND 17 OTHERS
CERTIORARI OR A DIRECTION IN THE NATURE OF A WRIT OF
CERTIORARI QUASHING THE IMPUGNED SHOW CAUSE NOTICE
DATED ANNEXURE-A ISSUED BY THE FIRST RESPONDENT
UNDER THE PROVISIONS OF THE ACT IN SCN.NO.51/2021-22
IN DIN-20210457YX0000712067 IN THE CASE OF THE
PETITIONER PERTAINING TO THE ASSESSMENT PERIODS
2015-16 AND 2016-17 AND ETC.
IN W.P. NO.23317 OF 2023
BETWEEN:
1. M/S VEERANNA LOKAPPA WALISHETTAR
A PROPRIETARY CONCERN
REPRESENTED HEREIN BY ITS
SOLE PROPRIETOR,
MR VEERANNA LOKAPPA WALISHETRA,
SON OF LOKAPPA WALISHETRA,
AGED 53 YEARS,
HAVING ADDRESS AT
SIDDAPURA, SAVANUR,
HAVERI - 581 118
ALSO AT:
VIDYANAGAR, NEARBY LAKSHMI PARK,
C BLOCK, 4TH CROSS,
HAVERI-581 110
... PETITIONER
(BY SRI. SANDEEP HUILGOL., ADVOCATE)
AND:
1. COMMISSIONER OF CENTRAL TAX
CENTRAL EXCISE AND SERVICE TAX,
GST COMMISSIONERATE,
BENGALURU NORTH WEST,
2ND FLOOR, SOUTH WING,
-8-
NC: 2024:KHC:26587
WP No. 628 of 2024
C/W WP No. 22017 of 2022
WP No. 6765 of 2023
AND 17 OTHERS
BMTC BUS STAND COMPLEX,
SHIVAJINAGAR,
BANGALORE-560 051
2. SUPERINTENDENT OF CENTRAL TAX
RANGE-ENWD8,
NORTH WEST DIVISION-8,
GROUND FLOOR, CR BUILDING,
C BLOCK, DEVRAJ URS LAYOUT,
DAVANGERE-577 006
3. ASSISTANT COMMISSIONER OF CENTRAL TAX
NORTH WEST DIVISION-8, HAVERI,
GROUND FLOOR, CR BUILDING,
C BLOCK, DEVRAJ URS LAYOUT,
DAVANGERE-577 006
4. CENTRAL BOARD OF INDIRECT TAXES AND
CUSTOMS
REPRESENTED HEREIN BY ITS CHAIRMAN,
DEPARTMENT OF REVENUE,
MINISTRY OF FINANCE,
NORTH BLOCK,
NEW DELHI-110 001
5. THE UNION OF INDIA
REPRESENTED HEREIN BY THE SECRETARY,
DEPARTMENT OF REVENUE,
MINISTRY OF FINANCE,
GOVERNMENT OF INDIA,
NORTH BLOCK,
NEW DELHI-110 001
6. BANK OF BARODA
REPRESENTED HEREIN BY THE
-9-
NC: 2024:KHC:26587
WP No. 628 of 2024
C/W WP No. 22017 of 2022
WP No. 6765 of 2023
AND 17 OTHERS
BRANCH MANAGER OF THE
HAVERI BRANCH,
MAMTHA CLINIC AND HOSPITAL,
GROUND FLOOR, 3RD CROSS,
PB ROAD, ASHWINI NAGAR,
HAVERI-581 110
... RESPONDENTS
(BY SRI. AKASH B SHETTY, ADVOCATE FOR R1 TO R4;
SRI G.D. SRINIVAS, CGSC FOR R5;
NOTICE TO R6 IS SERVED AND UNREPRESENTED)
THIS W.P. IS FILED UNDER ARTICLE 226 OF THE
CONSTITUTION OF INDIA, PRAYING TO i) QUASH THE
IMPUGNED ORDER-IN-ORIGINAL BEARING C.NO.V/15/65/200/
2021 ADJN. BNW, ORDER SL. NO. 31/2022-23/COM/BNW AND
DIN-20220957YX0000312251 WHICH WAS PASSED AND
ISSUED ON 23/09/2022 BY THE R1 UNDER CHAPTER V OF THE
FINANCE ACT, 1994 (ANNEXURE-A) AND ETC.
IN W.P. NO.26201 OF 2023
BETWEEN:
M/S DXCORR HARDWARE TECHNOLOGIES
PRIVATE LIMITED
A PRIVATE LIMITED COMPANY
REGISTERED UNDER THE
COMPANIES ACT 1956,
REPRESENTED BY ITS DIRECTOR
LATHA RAAVI
D/O SRI LAXMINARAYANA RAAVI
AGED ABOUT 40 YEARS
12, 1ST MAIN, VENKATESH LAYOUT
NAGASHETTY HALLI
BANGALORE - 560 094.
... PETITIONER
(BY SRI ANNAMALAI S, ADVOCATE)
- 10 -
NC: 2024:KHC:26587
WP No. 628 of 2024
C/W WP No. 22017 of 2022
WP No. 6765 of 2023
AND 17 OTHERS
AND:
1. THE PRINCIPAL COMMISSIONER
OF CENTRAL TAX
OFFICE OF THE PRINCIPAL
COMMISSIONER OF CENTRAL TAX
BENGALURU -NORTH COMMISSIONERATE
HMT BHAVAN, GANGA NAGAR
BENGALURU - 560 032.
2. THE PRINCIPAL COMMISSIONER
OF CENTRAL GOODS & SERVICE TAX
AND CENTRAL EXCISE, BELAGAVI
OFFICE OF THE PRINCIPAL
COMMISSIONER OF CENTRAL GOODS
AND SERVICE TAX AND CENTRAL EXCISE
NO. 71, CLUB ROAD,
BELAGAVI - 590 001.
... RESPONDENTS
(BY SRI JEEVAN J NEERALGI, ADVOCATE)
THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF
THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE SHOW
CAUSE NOTICE DTD 31.12.2020 VIDE FILE NO.GEXCOM / AE/
VRFN / TPD / 1175 / 2020-AE-COMMR-CGST-BENGALURU (N)
ISSUED BY THE R1 HEREIN MARKED AND REFERRED AS
ANNEXURE-A AND ETC.
IN W.P. NO.27259 OF 2023
BETWEEN:
1 . M/S SHANKARA SRIRAMLUNAIDU
NO.13/4, FLAT NO.208, 2ND FLOOR,
SOUNDARYA GARDENIA,
HMT MAIN ROAD JALAHALLI,
BENGALURU - 560 013
A PROPRIETORSHIP CONCERN
REPRESENTED BY ITS PROP:
- 11 -
NC: 2024:KHC:26587
WP No. 628 of 2024
C/W WP No. 22017 of 2022
WP No. 6765 of 2023
AND 17 OTHERS
SHANKARA
AGED ABOUT 51 YEARS
... PETITIONER
(BY SRI K M SHIVAYOGISWAMY, ADVOCATE)
AND:
1. JOINT COMMISSIONER OF CENTRAL TAX,
BANGALURU
NORTH-WEST COMMISSIONERATE,
2ND FLOOR, SOUTH WING,
BMTC BUS STAND COMPLEX,
SHIVAJINAGAR,
BENGALURU - 560 051
... RESPONDENT
(BY SRI ARAVIND V CHAVAN, ADVOCATE)
THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF
THE CONSTITUTION OF INDIA, PRAYING TO SET ASIDE THE
IMPUGNED ORDER PASSED BY THE RESPONDENT BEARING
NO. GEXCOM/ADJN/ST/ADC/1427/2021-ADJN DIN-20231157
YX0000000C34/3244/13 ORDER IN-ORIGINAL SL. NO. 65/JC/
BNW/2023-24 DATED 02.11.2023 VIDE ANNEXURE-F AND ETC.
IN W.P. NO.1863 OF 2024
BETWEEN:
1. SYED JEELANI
LATE SYED NADEALI,
AGED 58 YEARS,
PROPRIETOR OF M/S J.K. TRADERS
A PROPRIETORSHIP CONCERNS
NO.166/1, KBAR ROAD,
AUSTIN TOWN,
BENGALURU-560 047
... PETITIONER
(BY SRI. K M SHIVAYOGISWAMY.,ADVOCATE)
- 12 -
NC: 2024:KHC:26587
WP No. 628 of 2024
C/W WP No. 22017 of 2022
WP No. 6765 of 2023
AND 17 OTHERS
AND:
1. THE PRINCIPAL CHIEF COMMISSIONER
OF CENTRAL TAX GST, BENGALURU EAST,
TRAFFIC AND TRANSIT MANAGEMENT CENTRE,
BMTC BUS STAND, HAL AIRPORT ROAD,
DOMMALURU
BENGALURU-560 071
... RESPONDENT
(BY SRI. JEEVAN J. NEERALGI., ADVOCATE)
THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF
THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE
IMPUGNED ORDER-IN-ORIGINAL VIDE ORDER NO.OIO NO.21
AND 22/ST/P.COMMR/2023 DTD 25.09.2023 PASSED BY
RESPONDENT IN ANNEXURE-K, IN SO FAR AS THE PETITIONER
IS CONCERNED AND ETC.
IN W.P. NO.3523 OF 2024
BETWEEN:
1. M/S WIZTOONZ ANIMATIONS PRIVATE LIMITED
A PRIVATE LIMITED COMPANY,
UNDER REGISTERED COMPANIES ACT, 1956
REPRESENTED BY ITS DIRECTOR,
SRI T V SREEDHAR,
RESIDING AT 9AS, 1ST CROSS,
4TH BLOCK, 2ND PHASE,
NEAR VIDHYANAGARA BUS STAND,
BANASHANKARI 3RD STAGE,
BENGALURU - 560 085.
... PETITIONER
(BY SRI. ANNAMALAI S., ADVOCATE)
AND:
1. THE ASSISTANT COMMISSIONER OF CENTRAL TAX
OFFICE OF THE ASSISTANT
- 13 -
NC: 2024:KHC:26587
WP No. 628 of 2024
C/W WP No. 22017 of 2022
WP No. 6765 of 2023
AND 17 OTHERS
COMMISSIONER OF CENTRAL TAX,
DIVISION-3,
BENGALURU SOUTH COMMISSIONERATE,
2ND FLOOR, BMTC BUILDING,
KANAKAPURA ROAD, BANASHANKARI,
BENGALURU - 560 070.
2. THE DEPUTY COMMISSIONER OF CENTRAL TAX
OFFICE OF THE DEPUTY
COMMISSIONER OF CENTRAL TAX,
DIVISION-3,
BENGALURU SOUTH COMMISSIONERATE,
2ND FLOOR, BMTC BUILDING,
KANAKAPURA ROAD, BANASHANKARI,
BENGALURU - 560 070.
... RESPONDENTS
(BY SRI. ARAVIND V CHAVAN., ADVOCATE)
THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF
THE CONSTITUTION OF INDIA, PRAYING TO i) QUASH THE
SHOW CAUSE NOTICE DATED 10/10/2019 VIDE C.NO.
IV/09/167/2019-SD3 ISSUED BY THE R1 HEREIN MARKED AND
REFERRED AS ANNEXURE-A AND ETC.
IN W.P. NO.7608 OF 2024
BETWEEN:
B.H. SHIVA KUMAR
AN INDIVIDUAL
S/O SHRI BYADIGERE SHIVARAM HONNESH
AGED 63 YEARS
RESIDING AT NO.1304, 12TH CROSS
2ND STAGE, 2ND PHASE
MAHALAKSHMIPURAM
WEST OF CHORD ROAD
BENGALURU - 560 086.
... PETITIONER
(BY SRI PRADYUMNA HEJIB, ADVOCATE)
- 14 -
NC: 2024:KHC:26587
WP No. 628 of 2024
C/W WP No. 22017 of 2022
WP No. 6765 of 2023
AND 17 OTHERS
AND:
1. THE ADDITIONAL COMMISSIONER
OF CENTRAL TAX,
BENGALURU WEST COMMISSIONERATE,
1ST FLOOR, BMTC COMPLEX,
KANAKAPURA ROAD
BANASHANKARI,
BENGALURU - 560 070.
2. THE SUPERINTENDENT OF CENTRAL TAX
AWD-3 RANGE, WEST DIVISION-3
BENGALURU WEST COMMISSIONERATE
1ST FLOOR BMTC COMPLEX
KANAKAPURA ROAD, BANASHANKARI
BENGALURU - 560 070.
... RESPONDENTS
(BY SRI JEEVAN J NEERALGI, ADVOCATE)
THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF
THE CONSTITUTION OF INDIA PRAYING TO QUASH IMPUGNED
ORDER BEARING ORDER IN ORIGINAL (OIO) NO. 132/21-22
(ST) (DIN 2022 0357 YU 000 000 D5FF) DTD 31.03.22
(ANNEXURE-A) PASSED BY R1 AS ALSO LETTER BEARING DIN
20240157YU000000BD0F DTD 24.01.24 (ANNEXURE-C)
ISSUED BY R2 AND ETC.
IN W.P. NO.8299 OF 2024
BETWEEN:
1. SHRI SREEKANTHA GANESH PRASANNA
S/O SRIKANTA JOIS C.S.
AGED ABOUT 54 YEARS,
# 135, 23RD MAIN, D BLOCK,
2ND STAGE, J.P.NAGAR,
MYSORE - 570 008.
... PETITIONER
(BY SRI. K M SHIVAYOGISWAMY., ADVOCATE)
- 15 -
NC: 2024:KHC:26587
WP No. 628 of 2024
C/W WP No. 22017 of 2022
WP No. 6765 of 2023
AND 17 OTHERS
AND:
1. THE COMMISSIONER OF CENTRAL TAX (APPEALS)
S1 AND S2, VINAYA MARG,
SIDDARTHA NAGAR,
MYSORE - 570 011.
2. THE ASSISTANT COMMISSIONER OF CENTRAL TAX
AND CENTRAL EXCISE,
LAKSHMI PURAM DIVISION,
FIRST FLOOR, VINAYA MARGA,
SIDDHARTHA NAGAR
MYSORE - 570 011.
... RESPONDENTS
(BY SRI. JEEVAN J. NEERALGI., ADVOCATE)
THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF
THE CONSTITUTION OF INDIA, PRAYING TO DIRECTIONS IN
THE NATURE OF CERTIORARI TO SET ASIDE THE IMPUGNED
ORDER PASSED BY R-1 BEARING NO. DIN
20230557CV0000444375 ORDER-IN-APPEAL NO. MYS-EXCUS-
000-APP-YCS-129 AND 130-2023-24 (UNDER SECTION 35(A)
OF CENTRAL EXCISE ACT, 1944 DTD 15.05.2023, VIDE
ANNEXURE-H AND ETC.
IN W.P. NO.9674 OF 2024
BETWEEN:
1. SHRI GOVINDA RAJU SATHYAVELU
S/O GOVINDARAJU
AGED ABOUT 57 YEARS,
NO.26/2V, 8th MAIN RAOD,
C K STREET,
PALACE GUTTAHALLI / P.G HALLI
BANGALORE - 560 003
RESIDING AT 51ST A CROSS
NEAR KALYANAVENKATESHWARA TEMPLE
- 16 -
NC: 2024:KHC:26587
WP No. 628 of 2024
C/W WP No. 22017 of 2022
WP No. 6765 of 2023
AND 17 OTHERS
HEBBAL KEMPAPURA,
BANGALORE - 560 024.
... PETITIONER
(BY SRI. K M SHIVAYOGISWAMY., ADVOCATE)
AND:
1. THE ADDITIONAL COMMISSIONER OF CENTRAL TAX
BANGALORE NORTH COMMISSIONERATE
HMT BHAVAN,
GANGA NAGAR,
BENGALURU - 560 032
... RESPONDENT
(BY SRI. JEEVAN J. NEERALGI., ADVOCATE)
THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF
THE CONSTITUTION OF INDIA, PRAYING TO SET ASIDE THE
IMPUGNED EX-PARTE ORDER PASSED BY THE RESPONDENT
BEARING NO. DIN-20220357YW0000111B34/ORDER-IN-
ORIGINAL NO. 94/ST/2021-22 DTD. 29.03.2022 VIDE
ANNEXURE-A AND ETC.
IN W.P. NO.14354 OF 2024
BETWEEN:
MESTRAPPA VENKATARAMA REDDY
S/O LATE MESTRAPPA
AGED ABOUT 64 YEARS
RESIDING AT D.NO.36
MESTRAPPA BUILDING
80 FEET HENNUR MAIN ROAD
BANGALORE - 560 084.
... PETITIONER
(BY SRI CHANDRASHEKAR, ADVOCATE FOR
SRI RAMA MURTHY R, ADVOCATE)
- 17 -
NC: 2024:KHC:26587
WP No. 628 of 2024
C/W WP No. 22017 of 2022
WP No. 6765 of 2023
AND 17 OTHERS
AND:
THE PRINCIPAL COMMISSIONER
OF CENTRAL TAX
GST COMMISSIONERATE
BANGALORE EAST, 4TH FLOOR
TTMC / BMTC BUILDING
OLD AIRPOR ROAD, DOMLUR
BANGALORE - 560 071.
... RESPONDENT
(BY SRI JEEVAN J NEERALGI, ADVOCATE)
THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF
THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE
ORDER OF THE RESPONDENT DATED 21/02/2024 PASSED IN
NO. 07/ST/COMMR/2024 IN DIN-20240257000000111DAC
(ANNEXURE-F) AND ETC.
IN W.P. NO.16020 OF 2024
BETWEEN:
G. KANDASAMY
S/O GOVINDSAMY KOUNDAR
AGED ABOUT 65 YEARS
(NOT CLAIMING AND BENEFIT)
PROPERIETOR OF
M/S WILL POWER PROCESS
(A PROPRIETOR CONCERN
REGISTERD UNDER THE
PROVISIONS OF CGST/SGST ACT, 2017)
SF NO.411/2
ARIKAATU THOTTAM,
AVARAMPALAYAM
VEERAPANDI POST,
TIRUPUR - 641 605.
... PETITIONER
(BY SRI G. NATARAJU, ADVOCATE FOR
SRI BOLLAJU VENUGOPAL, ADVOCATE)
- 18 -
NC: 2024:KHC:26587
WP No. 628 of 2024
C/W WP No. 22017 of 2022
WP No. 6765 of 2023
AND 17 OTHERS
AND:
THE PRINCIPAL COMMISSIONER
OF CENTRAL TAX
GST WEST COMMISSIONERATE
OFFICE OF THE PRINCIPAL
COMMISSIONER OF CENTRAL TAX,
GST WEST COMMISSIONERATE,
TTMC BMTC BUILDING
BANASHANKARI,
BENGALRU - 560 070.
... RESPONDENT
(BY SRI JEEVAN J NEERALGI, ADVOCATE)
THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF
THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE
IMPUGNED ORDER PASSED BY RESPONDENT IN OIO NO.
47/2023-24 (PR.COMMR) DTD 13.03.2024, WHICH IS
HEREWITH ENCLOSED AS ANNEXURE-A IN GROSS VIOLATION
OF PRINCIPLES OF NATURAL JUSTICE AND ETC.
IN W.P. NO.16309 OF 2024
BETWEEN:
M/S SRI BALAJI ENTERPRISES
NO.26/B2,
OPP: INFOSYS TECHNOLOGIES
NEAR TVS SHOW ROOM
ELECTRONIC CITY
BENGALURU - 560 100
A PROPRIETORSHIP CONCERN
RERPESENTED BY ITS PROPRIETOR
SRI JAGADEESAN NARAYANAN.
... PETITIONER
(BY SRI GOVINDRAYA KAMATH K, ADVOCATE)
- 19 -
NC: 2024:KHC:26587
WP No. 628 of 2024
C/W WP No. 22017 of 2022
WP No. 6765 of 2023
AND 17 OTHERS
AND:
ASSISTANT COMMISSIONER OF CENTRAL TAX
OFFICE OF THE DEPUTY /ASSISTANT
COMMISSIONER OF CENTRAL TAX
SOUTH DIVISION -8, 7TH FLOOR
A WING, KENDRIYA SADAN
KORAMANGALA,
BENGALURU - 560 034.
... RESPONDENT
(BY SRI AMIT ANAND DESHPANDE, ADVOCATE)
THIS W.P. IS FILED UNDER ARTICLE 226 OF THE
CONSTITUTION OF INDIA, PRAYING TO QUASH/SET ASIDE THE
IMPUGNED ORDER DATED 27.12.2021 PASSED IN ORDER
SL.NO.68/2021-22 SD-8 FOR THE FINANCIAL YEAR 2015-16
BEARING DIN-20211257YV080000AE57 OF THE RESPONDENT
AS PER ANNEXURE-A BY ISSUING A WRIT OF CERTIORARI OR
ANY OTHER ORDER OR WRIT IN THE NATURE OF A WRIT IN
THE NATURE OF A WRIT OF CERTIORARI AND ETC.
IN W.P.NO.16623/2024:
BETWEEN:
SMT. SELVI JAGADEESHAN
W/O SRI JAGADEESHAN
AGED ABOUT 46 YEARS
NO.9, SLN NAGAR
BEHIND TRIMURTHY PHOTOCOM
BOMMASANDRA,
BENGALURU - 560 099.
... PETITIONER
(BY SRI GOVINDARAYA KAMATH K, ADVOCATE)
AND:
ASSISTANT COMMISSIONER OF
CENTRAL TAX,
- 20 -
NC: 2024:KHC:26587
WP No. 628 of 2024
C/W WP No. 22017 of 2022
WP No. 6765 of 2023
AND 17 OTHERS
OFFICE OF THE DEPTUY /ASSISTANT
COMMISSIONER OF CENTRAL TAX
SOUTH DIVISION-9, 7TH FLOOR,
C WING, KENDRIYA SADAN
KORAMANGALA
BENGALURU - 560 034.
... RESPONDENT
(BY SRI JEEVAN J NEERALGI, ADVOCATE)
THIS W.P. IS FILED UNDER ARTICLE 226 OF THE
CONSTITUTION OF INDIA, PRAYING TO QUASH/SET ASIDE THE
IMPUGNED ORDER DATED 26.09.2023 PASSED IN ORDER
SL.NO.79/2023-24 SD-9 FOR THE FINANCIAL YEAR 2015-16
BEARING DIN-20230957YV0000333C39 OF THE RESPONDENT
AS PER ANNEXURE-A BY ISSUING A WRIT OF CERTIORARI OR
ANY OTHER ORDER OR WRIT IN THE NATURE OF A WRIT OF
CERTIORARI AND ETC.
IN W.P. NO.17141 OF 2024
BETWEEN:
M/S VINNAV INFRATECK PRIVATE LIMITED
(REGISTERED UNDER
COMPANIES ACT, 1956)
NO.90 GROUND FLOOR,
4TH MAIN ROAD,
NEW BEL ROAD,
RMV II STAGE,
DEVASANDRA,
BENGALURU - 560 094.
(REPRESENTED BY ITS DIRECTOR,
SHRI. GIRIRAJU P
S/O LATE P VENKATARAJU
AGED ABOUT 60 YEARS)
... PETITIONER
(BY SRI GOVINDARAYA KAMATH K, ADVOCATE)
- 21 -
NC: 2024:KHC:26587
WP No. 628 of 2024
C/W WP No. 22017 of 2022
WP No. 6765 of 2023
AND 17 OTHERS
AND:
1 . THE COMMISSIONER OF
CENTRAL TAX
BENGALURU NORTH COMMISSIONERATE
OFFICE OF THE COMMISSIONER OF
CENTRAL TAX, HMT BHAVAN, GANGANAGAR
BENGALURU - 560 032.
2 . THE PRINCIPAL COMMISSIONER
OF CENTRAL TAX
OFFICE OF THE PRINCIPAL
COMMISSIONER OF CENTRAL TAX
HMT BAHAVAN, GANGANAGAR
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 QUASH THE SHOW
CAUSE NOTICE ISSUED BY R-1 IN DIN NO.
20220457YW0000444ECE/757 DTD. 10.04.2022 WHICH IS
HEREWITH ENCLOSED AS ANNEXURE-A AND ETC.
IN W.P. NO.18106 OF 2024
BETWEEN:
ENCOMIUM PR MEDIA PRIVATE LIMITED
(FORMERLY EULOGY MEDIA INDIA
PRIVATE LIMITED) A COMPANY UNDER THE
COMPANIES ACT (1), 1956
HAVING ITS REGISTERED OFFICE AT
SUITE 807, 7TH FLOOR, OXFORD TOWER
OLD AIRPORT ROAD, BANGALORE - 560 008
AND REPRESENTED BY ITS DIRECTOR
MRS. DHANA LAKSHMI
... PETITIONER
(BY SRI BHARATH JANARTHANAN, ADVOCATE)
- 22 -
NC: 2024:KHC:26587
WP No. 628 of 2024
C/W WP No. 22017 of 2022
WP No. 6765 of 2023
AND 17 OTHERS
AND:
1. ASSISTANT COMMISSIONER OF CENTRAL TAX
OFFICE OF THE ASSISTANT COMMISSIONER
OF CENTRAL TAX, EAST DIVISION-2
BENGALURU EAST COMMISSIONERATE
6TH FLOOR, B WING
T.T.M.C-B.M.T.C. BUS STAND
OLD AIRPORT ROAD, DOMLUR,
BENGALURU - 560 071.
2. ASSISTANT COMMISSIONER OF CENTRAL TAX
TAX RECOVERY CELL
BENGALURU EAST COMMISSIONERATE
OFFICE OF THE PRINCIPAL
COMMISSIONER OF CENTRAL TAX
BENGALURU EAST COMMISSIONERATE
T.T.M.C-B.M.T.C. BUS STAND
OLD AIRPORT ROAD, DOMLUR
BENGALURU - 560 071.
3. COMMISSIONER OF CENTRAL TAX (APPEALS)
T.T.M.C-B.M.T.C. BUS STAND
OLD AIRPORT ROAD, DOMLUR
BENGALURU - 560 071.
... RESPONDENTS
(BY SRI JEEVAN J NEERALGI, ADVOCATE)
THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF
THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE
IMPUGNED SHOW CAUSE NOTICE DATED 22/04/2021 BEARING
SCN NO. 161/2020-21 AND DIN 20210457YT0000414914 FOR
THE TAX PERIOD FROM APRIL 2015 TO MARCH 2016 ISSUED
BY THE R1 HEREIN AND MARKED AS ANNEXURE-A AND ETC.
IN W.P. NO.18151 OF 2024
BETWEEN:
SHRI SHESHAIAH NANDISH
S/O LATE D. SHESHAIAH
- 23 -
NC: 2024:KHC:26587
WP No. 628 of 2024
C/W WP No. 22017 of 2022
WP No. 6765 of 2023
AND 17 OTHERS
AGED ABOUT 49 YEARS
VADDARADODDI VILLAGE
NIDAGATTA VILLAGE, MADDUR TALUK
MANDYA - 571 433.
... PETITIONER
(BY SRI SANMATHI E.I., ADVOCATE)
AND:
1. ASSISTANT COMMISSIONER
OF CENTRAL TAX & CENTRAL EXCISE
BANNIMANTAP DIVISION S1 AND S2
VINAYA MARGA, SIDDARTHANAGAR
MYSORE - 570 011.
2. THE PR. COMMISSIONER OF CENTRAL TAX
MYSORE COMMISSIONERATE
VINAYA MARGA, SIDDARTHANAGAR
MYSORE - 570 011.
... RESPONDENTS
(BY SRI JEEVAN J NEERALGI, ADVOCATE)
***
THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF
THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE
ORDER (ORIGINAL) DATED 04/02/2023 PASSED BY THE
ASSISTANT COMMISSIONER OF CENTRAL EXCISE,
BANNIMANTAP DIVISON BEARING FILE NO.
GEXCOM/SCN/ST/8307/2021-TECH/00/23, NO. MYS-EXCUS-
000-BMTPDIV-AC-VM-083/2022-23, DIN NO. 2023025YYY0000
81788E PASSED APRIL 2015 TO JUNE 2017 AS ANNEXURE-A
AND NOTICE DATED 14/9/2023 FOR PERIOD APRIL 2015 TO
JUNE 2017 IS PRODUCED AS ANNEXURE-B AND ETC.
THESE PETITIONS COMING ON FOR FINAL HEARING,
THIS DAY, THE COURT MADE THE FOLLOWING:
- 24 -
NC: 2024:KHC:26587
WP No. 628 of 2024
C/W WP No. 22017 of 2022
WP No. 6765 of 2023
AND 17 OTHERS
ORDER
In all these matters, the proceedings by way of show cause notice under the Finance Act for Service Tax liability have been initiated on the basis of inputs received from the Central Board of Direct Taxes (CBDT) on the basis of Form 26AS/income tax returns filed.
2. Taking note of the order dated 03.07.2024 passed by this Court in W.P.No.11154/2023 and connected petitions, the present batch of Writ Petitions are also required to be disposed of in light of the observations made therein, as the legal contentions are identical and would fall within the consideration as reflected in the order dated 03.07.2024 passed in W.P.No.11154/2023 and connected petitions.
3. The observations made in the order dated 03.07.2024 passed in W.P.No.11154/2023 and connected petitions, reads as follows:-
"These petitions have been filed calling in question the action of the respondent Department in issuing show-
- 25 -
NC: 2024:KHC:26587 WP No. 628 of 2024 C/W WP No. 22017 of 2022 WP No. 6765 of 2023 AND 17 OTHERS cause notice or having passed the orders-in-original relating to demand sought to be raised under the provisions of the Finance Act, 1994 relating to service tax liability.
2. In all these matters, the proceedings by way of show-cause notice under the Finance Act for service tax liability have been initiated on the basis of inputs received from the Central Board of Direct Taxes on the basis of Form 26AS/Income Tax returns filed.
3. The details of the writ petitions and the stages are as follows:
Challenge to Show-cause Challenge to Orders-in-
Notice Original
Column No.1 Column No.2
WP No.16891/2022 WP No.12840/2023
WP No.13445/2023 WP No.15832/2022
WP No.15959/2021 WP No.3318/2023
WP No.24822/2022 WP No.14425/2022
WP No.8514/2023 WP No.15018/2022
WP No.24650/2022
WP No.12906/2023
WP No.22063/2022
WP No.19792/2022
WP No.25156/2022
WP No.5896/2023
WP No.17407/2023
WP No.11154/2023
WP No.9765/2022
WP No.17591/2022
WP No.1754/2023
WP No.8858/2023
WP No.16501/2023
WP No.7071/2023
WP No.9906/2023
WP No.8409/2023
- 26 -
NC: 2024:KHC:26587
WP No. 628 of 2024
C/W WP No. 22017 of 2022
WP No. 6765 of 2023
AND 17 OTHERS
WP No.8184/2023
WP No.16170/2022
WP No.1198/2024
WP No.14092/2023
WP No.341/2023
WP No.274/2023
WP No.12003/2022
WP No.13813/2022
WP No.7829/2023
WP No.20282/2022
WP No.19000/2022
WP No.8336/2023
WP No.10238/2023
WP No.6756/2024
4. After having heard the matters on various occasions, the Union of India have taken a stand and filed affidavit of the Principal Commissioner, Central Taxes.
5. Sri.N.Venkataraman, learned Additional Solicitor General who was present before the court on 27.06.2024 had submitted that they desire that the matters be resolved and accordingly have putforth a proposed mechanism and made certain suggestions in the affidavit filed. The relevant extract of the affidavit filed by the Principal Commissioner of Central Tax, presently holding charge of Bengaluru West and additional charge of Bengaluru East Commissionerate reads as hereunder:
"I, Kiran Verma, working as Principal Commissioner of Central Tax, presently holding charge of Bengaluru West and additional charge of Bengaluru East Commissionerate, Bengaluru do
- 27 -
NC: 2024:KHC:26587 WP No. 628 of 2024 C/W WP No. 22017 of 2022 WP No. 6765 of 2023 AND 17 OTHERS hereby solemnly affirm and state on oath as follows:
I am working as Principal Commissioner of Central Tax, Bengaluru West and holding additional charge of Bengaluru East Commissionerate, Bengaluru -560071. I am the concerned person in the above Writ Petition. I am fully conversant with the facts of the case. I am authorized to swear to this affidavit.
1. I submit that in the above batch of cases, the dispute is regarding the Issuance of the Show Cause Notice and demand of Service Tax made on the basis of information provided by CBDT (Central Board of Direct Taxes) as per the assessee's Income Tax returns. The Service Tax Levy is on the taxable services provided by one person or Entity to another, in terms of the provisions contained in the Finance Act, 1994 and the rules made thereunder.
2. I submit in these batch of Writ Petitions, there are cases pertaining to various categories of Services. It is submitted that a Memorandum of understanding was signed between the Central Board of Direct Taxes and the Central Board of Indirect Taxes & Customs on 21.07.2020 for the data exchange between the two Departments. This Memorandum of Understanding was signed for regular exchange of data which would help both the
- 28 -
NC: 2024:KHC:26587 WP No. 628 of 2024 C/W WP No. 22017 of 2022 WP No. 6765 of 2023 AND 17 OTHERS departments to keep a track on the tax evasion, which have not been reported under the Law.
3. I submit that all the petitioners have averred that the Show Cause Notices (SCN) were issued without the application of mind and further that the department has not verified the books of account and only on presumption have issued these Show Cause Notices. This averment of the petitioner is denied as false, as the department has taken utmost care by applying its mind and by examining the data received from the CBDT.
4. I submit that, Section 66B Finance Act, 1994 is the charging Section and Service is defined in Section 65B(44) and taxable Service is defined in Section 65B(51).The assessee is mandated to get the registration and secure compliance of the obligations placed on him by the Act which is prescribed in Chapter V of the Finance Act, 1994 (hereinafter called "the Act") read with the Service Tax Rules, 1994, the CENVAT Credit Rules, 2004, the Place of Provision of Services Rules, 2012, the Point of Taxation Rules, 2011, and the Service Tax (Determination of Value) Rules, 2006. In terms of Section 70 of the Finance Act, 1994, the petitioner is obligated to self-assess their liability and discharge the applicable tax as per the statutory provisions and the entire burden of compliance to statutory provisions is on the assessee themselves.
- 29 -
NC: 2024:KHC:26587 WP No. 628 of 2024 C/W WP No. 22017 of 2022 WP No. 6765 of 2023 AND 17 OTHERS As per the Act, the Show Cause Notice were issued in-terms of Section 73(1) of the Finance Act, 1994, as the services rendered by the assesses appeared to be classifiable as taxable service in terms of Section 65B(44) read with section 66B of the Finance Act, 1994.
5. I submit that the department received a total number of 49,665 cases from the CBDT and after receipt of the data the department has verified the same. After preliminary verification, the department initially filtered the cases and where there was no component of Service Tay dropped 21,549 such cases after detailed verification. Thereafter the department issued Show Cause Notices to the Assessee in the remaining 28,116 cases and called for clarification/explanation. The adjudicating authority during the course of adjudication, after providing a hearing opportunity to the notice, dropped the show cause notices in about 8,816 cases wherever the Service tax component was not found. The adjudicating Authority after providing reasonable opportunity and hearing opportunities proceeded to confirm the show cause notice by way of an Order-In-Original in a total number of 19,300 cases by following the due process of law and following the principles of natural justice. The department in further course of action has also recovered the Service Tax in 587
- 30 -
NC: 2024:KHC:26587 WP No. 628 of 2024 C/W WP No. 22017 of 2022 WP No. 6765 of 2023 AND 17 OTHERS cases where the service Tax component was confirmed during the adjudication.
6. I state that there is no prohibition under the provisions of the Finance Act 1994 or under the Service tax Rules to rely upon the third party information that is furnished by the IT department. The information need not be confined only in respect of information provided by the assessee. The object of sharing the data by the C.B.D.T to C.B.E.C (Now C.B.I.C) is to keep track of the statutory compliances by various categories of assessee. Hence there is no irregularity or illegality in relying upon the date obtained from the Income Tax department.
7. I state that the provisions of the Finance Act 1994 or Service Tax Rules do not contemplate any enquiry before issuing a show cause notice. No such procedure is contemplated either under the act or rules. The only preliminary enquiry to be undertaken was to examine the data obtained from the C.B.D.T, issue of intimations/ letters calling upon the assessees' to furnish their documents which are necessary to determine as to whether the assesses had provided taxable service and whether the activity of the assessee falls under the category of the taxable service or non-taxable service.
8. I further submit that, in many of the writ petitions the assessees' did not respond to the
- 31 -
NC: 2024:KHC:26587 WP No. 628 of 2024 C/W WP No. 22017 of 2022 WP No. 6765 of 2023 AND 17 OTHERS letters issued by the department seeking documents/information/clarifications. In spite of several reminders there was no response from the assesses. Hence, the department in absence of any other option, issued the Show Cause Notices on the address provided by the CBDT(address as in PAN/ITR).These show cause notices were issued keeping in mind the statutory time lines. In some cases, even after the issuance of Show Cause Notices, the assessee did not render their reply or failed to produce any document/clarifications.
9. Therefore, in the absence of any clarifications or documents by the assessee, decisions were taken based on available information and the Order-In-Original were passed. No Show Cause Notices were issued by the department where the clarifications with requisite documents were provided in time. Therefore, the allegations of non-application of mind etc. are factually untenable and cannot be sustained. The following consolidated data is submitted to support the above contention: -
Table-1 BANGALORE ZONE - DATA 01 02 03 04 05 06 07 Com No. of No. of No. of No.of No. of No. of missi cases cases cases Cases cases cases onera received dropped where where where where te's from prior to SCNs SCNs SCNs demand CBDT issuance were were were is of SCN issued dropped Confirmed recovered
- 32 -
NC: 2024:KHC:26587 WP No. 628 of 2024 C/W WP No. 22017 of 2022 WP No. 6765 of 2023 AND 17 OTHERS Bangalore 11,113 6,387 4,726 801 3,925 310 East Bangalore 4,355 1,465 2,890 952 1,938 44 North West Bangalore 12,120 4,447 7,673 2,340 5,333 99 South Mangalore 3,632 2,847 785 490 295 - Bangalore 5,564 1,928 3,636 1,629 2,007 9 North Mysore 2,703 843 1,860 441 1,419 32 Belagavi 5,842 2,549 3,293 864 2,429 58 Bangalore 4,336 1,083 3,253 1,299 1,954 35 West Total 49,665 21,549 28,116 8,816 19,300 587 Summary of the same is produced below:
Table-2 Sl Number Percentag No. of Cases e
(i) Number of references 49,665 100% received from CBDT
(ii) Dropped before issuance of 21,549 43% Show Cause Notice
(iii) Dropped after Show Cause 8,816 18% Notice issued and adjudicated.
(iv) No. of cases confirmed after 19,300 39% Show Cause Notice issued and adjudicated.(v) No. of assesses who agreed 587
to the department's contention and paid the tax liability to the exchequer before/after the issuance of the Show Cause Notice.
- 33 -
NC: 2024:KHC:26587 WP No. 628 of 2024 C/W WP No. 22017 of 2022 WP No. 6765 of 2023 AND 17 OTHERS Out of the 49,665 references received from CBDT a major portion i.e. 61% demands have been dropped and only 39% of the cases have been confirmed which shows that quasi-judicial authorities have taken independent decisions on merit. Where ever the demands were confirmed the aggrieved party have an appellate remedy under the Law.
10. I submit that when 587 assessees have complied with the law & paid up the taxes confirmed, grant of any relief to the present petitioners will put the compliant taxpayers into a disadvantageous position. Therefore, it is submitted that the quasi-judicial authority has taken independent decisions based on facts & law. When department has acted upon CBDT data to examine tax compliance all over the country, granting any relief to the petitioners in Karnataka alone will amount to disadvantage to the tax payers who have complied with the law.
11. I therefore submit that this Hon'ble High Court may direct the petitioners to appear before the quasi-judicial authorities as the petitions are premature and a robust appellate remedy is provided by the Law.
12. I submit that the contents stated above are as per records and correct to the best of my
- 34 -
NC: 2024:KHC:26587 WP No. 628 of 2024 C/W WP No. 22017 of 2022 WP No. 6765 of 2023 AND 17 OTHERS knowledge, information and belief which I believe to be true".
6. Learned Senior Counsel Sri.V.Raghuraman has also filed a note in response to the proposal and the same is taken on record.
7. After hearing both sides and though certain issues were raised, however both sides eventually have made a submission that the Court can take note of the affidavit and pass appropriate orders.
8. Upon suggestion of the court, learned Additional Solicitor General has responded positively and has stated that a team of Officers who are competent to pass orders without reference to the territorial jurisdiction would be constituted and from amongst such team of officers designation would be made and cases allotted in order to pass necessary orders from the stage of post show-cause notice which would be done within a period of three months.
9. Needless to state, a bare perusal of all the petitions reveals that the petitioners have raised various contentions which are required to be referred back for consideration by the appropriate authorities so that officers concerned may take note of the same while disposing off the petitions at the stage of post show-cause notice.
- 35 -
NC: 2024:KHC:26587 WP No. 628 of 2024 C/W WP No. 22017 of 2022 WP No. 6765 of 2023 AND 17 OTHERS
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.
13. Accordingly, the following:
ORDER In light of observations made above, the writ petitions relating to challenge to show-cause notice,
- 36 -
NC: 2024:KHC:26587 WP No. 628 of 2024 C/W WP No. 22017 of 2022 WP No. 6765 of 2023 AND 17 OTHERS 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 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."
- 37 -
NC: 2024:KHC:26587 WP No. 628 of 2024 C/W WP No. 22017 of 2022 WP No. 6765 of 2023 AND 17 OTHERS
4. The details of Writ Petitions and stages are as follows:-1 2 3
Sl. Writ Petition Stage of proceedings No. Number (order-in-original/order in appeal/ appeal proceedings pending) 1 628/2024 Order-in-original 2 22017/2022 Order-in-original 3 6765/2023 Order-in-original 4 19943/2023 Order-in-original 5 22946/2023 Order-in-original 6 23317/2023 Order-in-original 7 26201/2023 Order-in-original 8 27259/2023 Order-in-original 9 1863/2024 Order-in-original 10 3523/2024 Order-in-original 11 7608/2024 Order-in-original 12 8299/2024 Order-in-appeal/order in original 13 9674/2024 Order-in-original 14 14354/2024 Order-in-original 15 16020/2024 Order-in-original 16 16309/2024 Order-in-original 17 16623/2024 Order-in-original 18 17141/2024 Order-in-original 19 18106/2024 Order-in-original 20 18151/2024 Order-in-original
5. In light of the 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
- 38 -
NC: 2024:KHC:26587 WP No. 628 of 2024 C/W WP No. 22017 of 2022 WP No. 6765 of 2023 AND 17 OTHERS above, at the same stage. Accordingly, such of the writ petitions relating to challenge to show-cause notice are disposed off. The reconsideration must be made with reference to the issues raised in para-10 of W.P.No.11154/2023 and connected writ petitions extracted supra.
6. Insofar as Writ Petitions relating to challenge to Orders-in-Original, in light of the discussion made hereinabove, the Orders-in-Original stand set aside and the matters are relegated to the Officers to be designated (as referred to in para-8 of W.P.No.11154/2023 and connected writ petitions as extracted hereinabove) to be reconsidered from the stage of show-cause notice. The reconsideration must be made with reference to the issues raised in para-10 of W.P.No.11154/2023 and connected writ petitions extracted supra.
Accordingly, the Writ Petitions relating to challenge to the Orders-in-Original are disposed off.
- 39 -
NC: 2024:KHC:26587 WP No. 628 of 2024 C/W WP No. 22017 of 2022 WP No. 6765 of 2023 AND 17 OTHERS
7. The petitioners who are now relegated before the Authorities concerned are at liberty to file their replies/additional replies within a reasonable time as may be fixed by the Officers concerned.
8. Wherever the matters are pending in appeal, in light of the arrangement that is made, the petitioners to file a memo for withdrawal of appeal. If orders are passed in appeal and proceedings challenging Orders-in-appeal are pending before this Court, the Orders-in-appeal would stand set aside. The Orders-in-original in matters where Orders-in-appeal are challenged, would also receive the same treatment, i.e. be set aside as per the directions made hereinabove and be proceeded with from the stage of post show cause notice.
9. Needless to state that the petitioners are at liberty to file replies/additional replies to the show cause notice within the time fixed by the designated Officers.
- 40 -
NC: 2024:KHC:26587 WP No. 628 of 2024 C/W WP No. 22017 of 2022 WP No. 6765 of 2023 AND 17 OTHERS
10. Wherever demands have been made pursuant to the impugned orders, such proceedings including attachment are also set aside.
Accordingly, the petitions are disposed off.
Sd/-
JUDGE VGR