- 1 - HC-KAR NC: 2025:KHC-D:15624 WP No. 107922 of 2025 IN THE HIGH COURT OF KARNATAKA,AT DHARWAD DATED THIS THE 17TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 107922 OF 2025 (T-IT) BETWEEN: M/S. VIJAYALAXMI TRANSPORT STALL NO 17 MERCHANT NEW COTTON MARKER HUBBALLI - 580 028, (PRESENTY AT SPL PLOT NO 50 NEAR IBMR COLLEGE INDUSTRIAL ESTATE GOKUL ROAD, HUBBALLI 580 030), REPRESENTED BY ITS PARTNER, SHRI VIKRANT LAXMAN HUNSWADKAR. …PETITIONER (BY SRI. SHASHANK S. HEGDE, ADVOCATE) AND: 1. UNION OF INDIA, REPRESENTED BY UNION SECRETARY, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, NEW DELHI 110 001. 2. THE PRINCIPAL COMMISSIONER CENTRAL TAX, NO 71, CLUB ROAD, BELAGAVI - 590 001. 3. THE COMMISSIONER CENTRAL TAX (APPEALS), NO 71 CLUB ROAD, BELAGAVI 590 001. 4. THE ASSISTANT COMMISSIONER OF CENTRAL TAX, HUBBALLI DIVISION, HUBBALLI - 590 025. …RESPONDENTS (BY SRI. M.B.KANAVI, CGSC FOR R1; SRI. GIRISH HULMANI, ADVOCATE FOR R2 TO R4) Digitally signed by RAKESH S HARIHAR Location: High Court of Karnataka, Dharwad Bench, Dharwad - 2 - HC-KAR NC: 2025:KHC-D:15624 WP No. 107922 of 2025 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE AN APPROPRIATE WRIT, ORDER OR A DIRECTION IN THE NATURE OF A WRIT OF CERTIORARI QUASHING THE, I. ORDER-IN- ORIGINAL NO. BEL-EXCUS-000-HBL-AC-MR-44-2023-24-ST, DT. 26.10.2023 PASSED BY THE RESPONDENT NO.4 VIDE ANNEXURE F. II. ORDER-IN-APPEAL NO.BGM-EXCUS-000-APP- AS-413-2024-25, DT. 12.03.2025 PASSED BY THE RESPONDENT NO.3 VIDE ANNEXURE H. ISSUE A WRIT OF MANDAMUS, OR ANY OTHER APPROPRIATE WRIT, ORDER, OR DIRECTION, AS THIS HON’BLE COURT MAY DEEM FIT AND PROPER, DIRECTING THE RESPONDENT NO.4. I. TO RE-ADJUDICATE THE SHOW CAUSE NOTICE IN ANNEXURE D AGAIN. II. NOT TO BE INFLUENCED OR PREJUDICED BY THE FINDINGS, OBSERVATIONS OR REASONINGS RECORDED IN THE PREVIOUS ADJUDICATION PROCEEDINGS. III. NOT TO RELY UPON OR REFER TO ANY PART OF THE SAID PROCEEDINGS IN THE COURSE OF THE FRESH ADJUDICATION, AND IV. TO CONDUCT THE ADJUDICATION AFRESH, INDEPENDENTLY AND ON MERITS, WITH AN OPEN MIND AND TO CONCLUDE THE SAME EXPEDITIOUSLY WITHIN A TIME-BOUND FRAMEWORK AS MAY BE PRESCRIBED BY THIS HON’BLE COURT AND ETC., THIS WRIT PETITION, COMING ON FOR PRELIMINARY HEARING THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 3 - HC-KAR NC: 2025:KHC-D:15624 WP No. 107922 of 2025 ORAL ORDER (PER: THE HON'BLE MR. JUSTICE M.NAGAPRASANNA) 1. The petitioner is before this Court seeking for the following prayer: A. Issue an appropriate writ, order or a direction in the nature of a writ of Certiorari quashing the, i. Order-in-Original No. BEL-EXCUS-000-HBL- AC-MR-44-2023-24-ST, dt. 26.10.2023 passed by the Respondent no.4 vide Annexure F. ii. Order-in-Appeal no.BGM-EXCUS-000-APP- AS-413-2024-25, dt. 12.03.2025 passed by the Respondent no.3 vide Annexure H. B. Issue a writ of Mandamus, or any other appropriate writ, order, or direction, as this Hon’ble Court may deem fit and proper, directing the Respondent No.4. i. to re-adjudicate the show cause notice in Annexure D again. ii. not to be influenced or prejudiced by the findings, observations or reasonings recorded in the previous adjudication proceedings. iii. not to rely upon or refer to any part of the said proceedings in the course of the fresh adjudication, and iv. to conduct the adjudication afresh, independently and on merits, with an open mind and to conclude the same expeditiously within a time-bound framework as may be prescribed by this Hon’ble Court. C. Pass such other order as this Hon’ble Court may deem fit and proper in the facts and circumstances of the case and in the interest of justice including the costs of this Writ Petition. - 4 - HC-KAR NC: 2025:KHC-D:15624 WP No. 107922 of 2025 2. Heard Sri Shashank S. Hegde, learned counsel for the petitioner, Sri.M.B.Kanavi learned CGSC for respondent no. 1 and Sri Girish Hulmani, learned counsel for respondent no. 2 to 4. 3. Learned counsel appearing for the petitioner submits that the issue in the lis stands answered by the judgment rendered by a co-ordinate bench in the case of M/S KARNATAKA CHINMAYA SEVA TRUST VS. JOINT COMMISSIONER OF CENTRAL TAX, in W.P.No.11154/2023 AND CONNECTED MATTERS, disposed on 03.07.2024. 4. Learned counsel for the respondents would not dispute the position of law, except the fact that the matter should be remitted to the stage of the submission of reply to the show cause notice by the petitioner. 5. The Co-ordinate Bench in the aforesaid W.P.No.11154/2023 and connected matters, considering the entire spectrum of the law and issue, passed the following order: “10. The officers while disposing off the petitions to keep in mind the following: - 5 - HC-KAR NC: 2025:KHC-D:15624 WP No. 107922 of 2025 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, 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. - 6 - HC-KAR NC: 2025:KHC-D:15624 WP No. 107922 of 2025 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.” 6. In the light of the afore-quoted judgment of the Coordinate Bench and that the fact the petitioner is similarly placed, I deem it appropriate to remit the matter back to respondent No.4 – Authority. 7. For the aforesaid reasons, the following: ORDER a. The writ petition is allowed and remitted back to the respondent No.4 - Authority. b. The impugned order-in-original dated 26.10.2023, at Annexure ‘F’ and order-in-appeal dated 12.03.2025, at Annexure-H, stand quashed. c. The petitioner shall now submit his reply to the show cause notice dated 12.10.2020, within four weeks from the date of receipt of a copy of the order. - 7 - HC-KAR NC: 2025:KHC-D:15624 WP No. 107922 of 2025 d. Respondent No.4 shall, from the stage of submitting reply to the show cause notice by the petitioner, consider the same and pass necessary orders in accordance with law, bearing in mind the afore-quoted judgment of the Co-ordinate Bench. e. It is open to the Authority to regulate its procedure and take the issue to its logical conclusion. Ordered accordingly. Sd/- (M.NAGAPRASANNA) JUDGE KGK/CT-ASC List No.: 1 Sl No.: 68