- 1 - HC-KAR NC: 2026:KHC:4636 WP No. 35202 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 28TH DAY OF JANUARY, 2026 BEFORE THE HON'BLE MR. JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 35202 OF 2025 (T-RES) BETWEEN: M/S RADIANT INFRA PROPRITORY CONCERN G-1, HARINVAS ARCADE SAMEEPURA MAIN ROAD K.G. NAGAR, BANGALORE-560019. …PETITIONER (BY SRI. BALASUBBAIAH B.G., ADVOCATE) AND: OFFICE OF THE PRINCIPAL COMMISSIONER OF CENTRAL TAX BENGALURU WEST, GST COMMISSIONERATE 1ST FLOOR, TTMC COMPLEX, BMTC BUS STAND BANASHANKARI BENGALURU-560 070. …RESPONDENT (BY SRI. JEEVAN J. NEERALAGI, ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF CERTIORARI OR ANY OTHER WRIT OR ORDER OR DIRECTION IN THE NATURE OF CERTIORARI QUASHING THE IMPUGNED ORDER BEARING NO.155/2023-24, DATED 25.03.2024, PASSED BY THE RESPONDENT FOR THE PERIOD 01.04.2015 TO 30.06.2017 AS AT ANNEXURE-A AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S SUNIL DUTT YADAV Digitally signed by VIDYA G R Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:4636 WP No. 35202 of 2025 ORAL ORDER The petitioner has sought for setting aside of the Order-in-Original at Annexure-'A' dated 25.03.2024, whereby the respondent Authority has passed the order holding that the services provided by the petitioner are taxable, while confirming the demand earlier issued. 2. It is the case of the petitioner that the entire proceedings are based on the inputs received from the Central Board of Direct Taxes [CBDT] solely on the basis of Income Tax records including the TDS and that such proceedings initiated solely on the basis of inputs from CBDT would vitiate the proceedings, as the Authority is required to quantify the Service Tax based on chargeability. 3. It is submitted that due to bona fide reasons, the petitioner was unable to make out a reply to the show-cause notice, and on merits, submits that the demand for Service Tax is on the basis of total turnover - 3 - HC-KAR NC: 2026:KHC:4636 WP No. 35202 of 2025 without taking note of 'reimbursable expenditure' or bifurcation of 'service component'. It is submitted that, if the matter is remitted to the stage of reply to the show cause notice, the petitioner would make out a stand on merits. 4. Reliance is placed on the order dated 03.07.2024 passed in W.P.No.11154/2023 and connected petitions. 5. The factum of Service Tax being levied on the basis of income derived as is inferred, through income tax returns appears to be uncontroverted. 6. Perused the order dated 03.07.2024 passed in W.P.No.11154/2023 and connected petitions. 7. 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:- - 4 - HC-KAR NC: 2026:KHC:4636 WP No. 35202 of 2025 "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. - 5 - HC-KAR NC: 2026:KHC:4636 WP No. 35202 of 2025 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. 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- - 6 - HC-KAR NC: 2026:KHC:4636 WP No. 35202 of 2025 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. The submission of learned counsel for the petitioner that Service Tax demand is raised on the basis of total turnover without taking note of 'service component' or 'reimbursable expenditure', is an aspect that prima facie requires consideration upon petitioner taking a stand in the reply to the show cause notice. 9. Accordingly, 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, this petition is disposed of by passing the following order:- (i) The Order-in-Original at Annexure-'A' dated 25.03.2024 is set aside. The matter is - 7 - HC-KAR NC: 2026:KHC:4636 WP No. 35202 of 2025 remitted to the stage of reply to the show- cause notice. (ii) 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. (iii) The petitioner to appear before the Adjudicating Authority on 16.02.2026 without waiting for any notice. Sd/- (S SUNIL DUTT YADAV) JUDGE VGR