- 1 - HC-KAR NC: 2026:KHC:3075 WP No. 27177 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 20TH DAY OF JANUARY, 2026 BEFORE THE HON'BLE MR. JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 27177 OF 2025 (T-RES) BETWEEN: KATLAGANTI SREENIVASULU KUMUDAVENI AN INDIVIDUAL, AGED ABOUT 50 YEARS W/O MR. SREENIVASULU REDDY KATLAGANTI HAVING OFFICE AT NO. 1542/41 SRI SRINIVASA NILAYA SOUTH END, 'B' CROSS NEAR SOUTH END CIRCLE, JAYANAGAR, BENGALURU 560 069 EMAIL ID: SRIVATSALAW@GMAIL.COM MOBILE NO. 91 8971470774. …PETITIONER (BY SRI. PRADYUMNA HEJIB., ADVOCATE) AND: 1. THE JOINT COMMISSIONER OF CENTRAL TAX BENGALURU SOUTH GST 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. Digitally signed by VIDYA G R Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:3075 WP No. 27177 of 2025 3. THE SUPERINTENDENT OF CENTRAL TAX, ARREARS RECOVERY CELL BENGALURU SOUTH COMMISSIONERATE 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 ISSUE A WRIT IN THE NATURE OF CERTIORARI OR ANY OTHER WRIT/S TO QUASH ORDER-IN-ORIGINAL NO. 67/2022-23 (DIN 2022 1057 0000 0000 B084) DATED 04.10.2022 PASSED BY THE FIRST RESPONDENT (ANNEXURE-A) ORDER-IN-APPEAL BEARING NO. 81/2024 DATED 01.02.2024 PASSED BY THE SECOND RESPONDENT (ANNEXURE -B) AND ETC., THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S SUNIL DUTT YADAV ORAL ORDER The present petition has been filed seeking for issuance of writ of certiorari to set aside the Order-in-Original at Annexure-'A' dated 04.10.2022 passed by respondent No.1 as well as the Order in Appeal at Annexure-'B' dated 01.02.2024 bearing No.81/2024 passed by respondent No.2 and as well as the Recovery Notice at Annexure-'C' dated 24.07.2025 issued by respondent No.3. - 3 - HC-KAR NC: 2026:KHC:3075 WP No. 27177 of 2025 2. It is the case of the petitioner that the petitioner is engaged in providing advertising agency services. The petitioner is aggrieved by the Order-in-Original dated 04.10.2022, wherein, Service Tax levy of Rs.81,01,102/- has been fastened. It is specifically asserted that the adjudication order demanding Service Tax, interest and penalties has been passed on the strength of third-party data, i.e. income tax returns filed for the years 2015-2016, 2016-2017, while concluding that the gross income declared was to be construed as income received from rendering of taxable services. 3. It is specifically asserted that levy is not sustainable, as the services rendered falls in the 'Negative List of Services' as per Section 66D of the Finance Act 4. It is further submitted that though appeal was filed, it was dismissed without adjudication on merits on the sole ground of failure to make the pre-deposit amount. - 4 - HC-KAR NC: 2026:KHC:3075 WP No. 27177 of 2025 5. Learned counsel for the petitioner submits that in all matters where service tax liability was to be fastened based on the income tax returns and Form 26AS, this Court has been remanding the matter for re-consideration taking note of the observations made in th order dated 03.07.2024 passed in W.P.No.11154/2023 and connected petitions. It is submitted that the order on the same terms may be passed in the present case also, while remanding the matter to the stage of reply to the show-cause notice. 6. It is further submitted that though appeal is filed since there is no adjudication on merits, the order of adjudication can be set aside with a direction to re-do from the stage of reply to the show-cause notice. 7. Sri Akash B. Shetty, learned counsel appearing for the Revenue submits that the order dated 03.07.2024 passed in W.P.No.11154/2023 and connected petitions, is a matter of record and the Court may pass appropriate orders. - 5 - HC-KAR NC: 2026:KHC:3075 WP No. 27177 of 2025 8. The factum of Service Tax being levied on the basis of income derived as is inferred, through income tax returns appears to be uncontroverted. 9. Perused the order dated 03.07.2024 passed in W.P.No.11154/2023 and connected petitions. 10. This Court while disposing of the said petitions by remanding it to the stage of reply to the show cause notice had made certain observations to be kept in mind by the concerned officials. The observations made from para-10 onwards reads as follows:- 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? - 6 - HC-KAR NC: 2026:KHC:3075 WP No. 27177 of 2025 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 - 7 - HC-KAR NC: 2026:KHC:3075 WP No. 27177 of 2025 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." - 8 - HC-KAR NC: 2026:KHC:3075 WP No. 27177 of 2025 11. It is not in dispute that the Order in Appeal is a mere order of dismissal of appeal due to non-compliance of statutory requirement of pre-deposit. The order of adjudication itself requires reconsideration taking note of the order dated 03.07.2024 passed in W.P.No.11154/2023 and connected petitions, the relevant portions of which are extracted hereinabove. 12. Accordingly, the Order-in-Original at Annexure-'A' dated 04.10.2022, Order in Appeal at Annexure-'B' dated 01.02.2024 and the Recovery Notice at Annexure-'C' dated 24.07.2025 are set aside. The matter is remitted to the stage of reply to the show cause notice. The Authorities to take note of the observations made in the order dated 03.07.2024 passed in W.P.No.11154/2023 and connected petitions as extracted supra, in specific, to the observations at para-10 of the order as may be applicable. All contentions are kept open. 13. Needless to state that the petitioner is at liberty to make out a fresh reply to the show cause notice. - 9 - HC-KAR NC: 2026:KHC:3075 WP No. 27177 of 2025 14. The petitioner to appear before the respondent No.1 on 09.02.2026 without waiting for any notice. Accordingly, the petition is disposed of. Sd/- (S SUNIL DUTT YADAV) JUDGE VGR