- 1 - HC-KAR NC: 2026:KHC:29687 WP No. 17549 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 17TH DAY OF JUNE 2026 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 17549 OF 2026 (T-RES) BETWEEN: SACHIN KUMAR A2-175, DLF WESTEND HEIGHTS, AKSHAYANAGAR MAIN ROAD, BTM 6TH STAGE, BENGALURU 560068 AGED ABOUT 46 YEARS, PAN AHSPK089J …PETITIONER (BY SRI. TANMAYEE RAJKUMAR., ADVOCATE) AND: 1. ASSISTANT COMMISSIONER OF CENTRAL SOUTH DIVISION 4, 7TH FLOOR, C WING, KENDRIYA SADAN, KORAMANGALA, BANGALORE 560034 2. DEPUTY COMMISSIONER OF CENTRAL TAX SOUTH DIVISION 4, 7TH FLOOR, C WING, KENDRIYA SADAN, KORAMANGALA, BENGALURU 560034 Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:29687 WP No. 17549 of 2026 3. PRINCIPAL COMMISSIONER OF CENTRAL TAX GST BENGALURU EAST, TRAFFIC AND TRANSIT MANAGEMENT CENTRE, BMTC BUS STAND, OLD AIRPORT ROAD, DOMMALURU, BENGALURU 560071 …RESPONDENTS (BY SRI. ARAVIND V. CHAVAN, ADVOCATE) THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED GARNISHEE NOTICE BEARING FILE NO. GEXCOM/TAR/D/ST/3426/2025-CGST- DIV-SD-4-COMMRTE DATED 23.03.2026 ISSUED BY THE 1ST RESPONDENT (ANNEXURE- D); QUASH THE IMPUGNED RECOVERY NOTICE BEARING FILE NO. GEXCOM/TECH/MISCH/2219/2025-CGST- DIV-SD-4-COMMRTE 125/26 DATED 27.02.2026 ISSUED BY THE 1ST RESPONDENT (ANNEXURE - E); QUASH THE IMPUGNED ORDER-IN-ORIGINAL BEARING SL. NO. 185/2023 SD-4 DATED 14.06.2023 PASSED BY THE 1ST RESPONDENT FOR THE FINANCIAL YEAR 2015-16 (ANNEXURE - F); DECLARE THAT THE ORDER-IN-ORIGINAL BEARING SL. NO. 79/2021 SD-4 PASSED ON 22.02.2021 FOR THE FINANCIAL YEAR 2014-15 DOES NOT PERTAIN TO THE PETITIONER, AND RESTRAINING THE RESPONDENTS FROM TAKING ANY ACTION AGAINST THE PETITIONER, PURSUANT TO THE SAID ORDER (ANNEXURE- G). THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 3 - HC-KAR NC: 2026:KHC:29687 WP No. 17549 of 2026 CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD ORAL ORDER The petitioner is aggrieved by the Orders-in- Original dated 14.06.2023 and 22.02.2021. The Order-in-Original dated 22.02.2021 [Annexure - G] relates to the financial year 2014-15, and the order dated 14.06.2023 [Annexure - F] relates to the financial year 2015-16. The petitioner has also called in question the Recovery Notice dated 27.02.2026 [Annexure - E] and the Garnishee Notice dated 23.03.2026 [Annexure - D]. These impugned Recovery and Garnishee notices are common to both the impugned Orders-in-Original. 2. Ms. Tanmayee Rajkumar, the learned counsel for the petitioner, submits that if the petitioner seeks indulgence of this Court for interference with the Order dated 14.06.2023 on the ground of a better opportunity, the petitioner seeks interference with the Order dated 22.02.2021 on the - 4 - HC-KAR NC: 2026:KHC:29687 WP No. 17549 of 2026 ground that it is not against the petitioner. On the grievance with the order dated 14.06.2023, the learned counsel submits the following: [i] The proceedings are concluded with some participation by the petitioner on the basis of the information shared pursuant to a contract between the Central Board of Direct Taxes and the Central Board of Indirect Taxes. [ii] In very similar circumstances, this Court has interfered to restore the proceedings with opportunity to show cause against conclusion of proceedings under Section 73 of the Finance Act, 1994 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 dated 03.07.2024. - 5 - HC-KAR NC: 2026:KHC:29687 WP No. 17549 of 2026 [iii] The petitioner could show cause against this order dated 14.06.2023 because the petitioner has filed returns for the relevant year i.e., 2015-16 furnishing details of the income earned from trading but there could be a possible error in mentioning that the petitioner's income is from sale of services. [iv] The documents demonstrate that the petitioner is engaged only in trading of shares and not in sale of services. 3. Ms. Tanmayee Rajkumar, insofar as the order dated 22.02.2021 which is relevant to the financial year 2014-2015, points out that, though the order is in the name of Mr. Sachin Kumar, the order relates to a person whose PAN Number is No. BJEPS9834C and whose address is as seen in the order. The learned counsel emphasizes that the - 6 - HC-KAR NC: 2026:KHC:29687 WP No. 17549 of 2026 order dated 22.02.2021 cannot relate to the petitioner because the petitioner's PAN Number is No. AHSPK0895J and the petitioner has never been at the address as mentioned in the impugned order. 4. Mr. Aravind V. Chavan, the learned Standing counsel for the respondents, is heard and he cannot dispute that this Court in M/s. Karnataka Chinmaya Seva Trust Vs. Joint Commissioner of Central Tax [supra] has interfered to restore the proceedings for due opportunity and after this Court's intervention, the jurisdictional Officers have been authorized to conduct fresh proceedings. 5. This Court, in the circumstances emphasized on behalf of the petitioner, is of the view that notwithstanding the participation that could be by the petitioner, there must be interference with the order dated 14.06.2023 [Annexure - F] because if ultimately the petitioner can justify that what is offered to tax is only income from trading and not - 7 - HC-KAR NC: 2026:KHC:29687 WP No. 17549 of 2026 from sale of services, there cannot be any liability under the Finance Act, 1994. As regards the order dated 22.02.2021, this Court must opine that the Authorities cannot justify initiation of the proceedings against the petitioner if the PAN and the address details cannot relate to him. In the light of the afore, the following: ORDER [A] The petition is allowed-in-part declaring that the Order-in-Original dated 22.02.2021 cannot be sustained against the petitioner and the Order- in-Original dated 14.06.2023 is quashed restoring the proceedings for fresh consideration. [B] Consequentially, the impugned Recovery Notice dated 27.02.2026 and the Garnishee Notice dated 23.03.2026 are quashed with liberty to - 8 - HC-KAR NC: 2026:KHC:29687 WP No. 17549 of 2026 the respondents to initiate proceedings subject to outcome in the pending proceedings [C] The petitioner is reserved with liberty to appear without further notice with the jurisdictional Assessing Officer [the first respondent] on 20.07.2026 and file its documents on such date or such further date as the first respondent may allow. [D] It is needless to observe that all contentions are left open for reconsideration in the pending proceedings. Sd/- (B M SHYAM PRASAD) JUDGE RB