- 1 - HC-KAR NC: 2025:KHC:33382 WP No. 24849 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 28TH DAY OF AUGUST, 2025 BEFORE THE HON'BLE MR. JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 24849 OF 2025 (T-RES) BETWEEN: LAVA KUSHA TRANSPORT A PROPRIETORSHIP CONCERN OF MR. SRINIVASA REDDY, S/O SHRI RAJA KRISHNA REDDY, AGED ABOUT 61 YEARS, HAVING OFFICE AT: NO. 1, GROUND FLOOR, 3RD CROSS, ELECTRONIC CITY POST, BENGALURU 560 100. …PETITIONER (BY SRI. PRADYUMNA HEJIB, ADVOCATE) AND: 1. THE COMMISSIONER OF CENTRAL TAX BANGALORE SOUTH COMMISSIONERATE P.B. NO 5400, C.R. BUILDING, QUEEN'S ROAD, BENGALURU - 560 001 2. THE PRINCIPAL ADDITIONAL DIRECTOR GENERAL, DIRECTORATE GENERAL OF GST INTELLIGENCE 112, SP ENCLAVE, K.H. ROAD, BENGALURU 560 027 3. THE ASSISTANT COMMISSIONER OF CENTRAL TAX (ARREARS RECOVERY CELL) P.B. NO 5400, C.R. BUILDING, QUEEN'S ROAD, Digitally signed by SUNITHA K S Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:33382 WP No. 24849 of 2025 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 ISSUE A WRIT IN THE NATURE OF CERTIORARI OR ANY OTHER APPROPRIATE WRIT/S TO QUASH THE IMPUGNED ORDER-IN-ORIGINAL NO. 10/ST/COMMR /2022 DIN 2022 0357 YV00 0066 6CA4 DATED 09.03.2022, PASSED BY THE FIRST RESPONDENT ANNEXURE - A. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE M.NAGAPRASANNA ORAL ORDER The petitioner is before this court seeking the following prayer. 1. “Issue a writ in the nature of certiorari or any other appropriate writ/s to quash the impugned order-in-original no. 10/ST/COMMR /2022 [DIN 2022 0357 YV00 0066 6CA4] dated 09.03.2022, passed by the first respondent (Annexure - A) 2. Grand such other order or direction as deemed fit in the facts and circumstances of the case in the interest of justice.” - 3 - HC-KAR NC: 2025:KHC:33382 WP No. 24849 of 2025 2. Heard the learned counsel for the petitioner and learned counsel for the respondents. 3. The learned counsel appearing for the petitioner submits that all the issues in the list have been answered by the Co-ordinate bench in W.P.No.9522/2021 and connected matters. The Co-ordinate bench has held as follows: “2. The common thread that runs through all these petitions are that the petitioners are engaged in providing of manpower supply as well as vehicles in some of the cases to the Bruhat Bengaluru Mahanagara Palike [‘BBMP’} pursuant to tenders followed by Agreements/Work Orders issued by the Authority.” 4. The Co-ordinate bench on considering every issue raised has answered them in the following manner. “(ii) The facts that are made out are that the petitioner which was registered under the Service Tax as a provider of taxable services of “cleaning services” was issued with notices - 4 - HC-KAR NC: 2025:KHC:33382 WP No. 24849 of 2025 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 - 5 - HC-KAR NC: 2025:KHC:33382 WP No. 24849 of 2025 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 - 6 - HC-KAR NC: 2025:KHC:33382 WP No. 24849 of 2025 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 - 7 - HC-KAR NC: 2025:KHC:33382 WP No. 24849 of 2025 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 cause notices are relegated to the stage of post show cause notice reserving - 8 - HC-KAR NC: 2025:KHC:33382 WP No. 24849 of 2025 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. - 9 - HC-KAR NC: 2025:KHC:33382 WP No. 24849 of 2025 (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.” 5. In the light of the issue standing answered by the Co-ordinate bench, the petitioner who stands on an identical footing is entitled to the same order that is passed by the Co-ordinate bench. Accordingly, the writ petition is disposed of. Sd/- (M.NAGAPRASANNA) JUDGE SKS List No.: 1 Sl No.: 149