- 1 - HC-KAR NC: 2026:KHC:24073 WP No. 35759 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 29TH DAY OF APRIL, 2026 BEFORE THE HON'BLE MR. JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 35759 OF 2025 (T-RES) BETWEEN: 1. SRI PRADEEP N SHETTY S/O NARAYANA SHETTY, AGED ABOUT 40 YEARS, HERURU MULLUGUDDE VILLAGE, KUNDAPURA TALUK, UDUPI DISTRICT - 576 224. … PETITIONER (BY SRI. RAVISHA M G., ADVOCATE) AND: 1. UNION OF INDIA THROUGH ITS SECRETARY, (REVENUE), MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI - 110 001. 2. THE COMMISSIONER OF CENTRAL EXCISE AND SERVICE TAX (APPEALS) NO.71, CLUB ROAD, BELAGAVI. PIN-590 019 3. THE ASSISTANT COMMISSIONER OF CENTRAL, EXCISE AND CENTRAL TAX, Digitally signed by VIJAYA P Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:24073 WP No. 35759 of 2025 UTTARAKANNADA DIVISION, M.G.ROAD, OPP. LIC OF INDIA, KARWAR - 581 301. … RESPONDENTS (BY SRI. SUSHAL TIWARI N., ADVOCATE FOR R1; SRI ARAVIND V. CHAVAN, ADVOCATE FOR R2 AND R3) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO A) QUASHING THE IMPUGNED ORDERS DTD. 29/01/2025 PASSED N MLR- EXCUS-000-APP-AS-131/2024-25 BY THE R2 AUTHORITY I.E THE HON'BLE COMMISSIONER OF CENTRAL GST AND CENTRAL EXCISE (APPEALS), IN A. NO. 11/2025/MR/ST, I.E., ANNEXURE-A AND ETC. THIS PETITION COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S SUNIL DUTT YADAV ORAL ORDER Sri. Sushal Tiwari, learned counsel accepts notice for respondent No.1. Sri. Aravind Chavan, learned counsel accepts notice for respondents 2 and 3. 2. It is the case of the petitioner that there has been adjudication under the provisions of the Finance Act and demand regarding service tax has been raised placing - 3 - HC-KAR NC: 2026:KHC:24073 WP No. 35759 of 2025 reliance on the inputs from the income tax returns. It is submitted that under similar circumstances, this Court in W.P.No.11154/2023 and connected matters has remitted the matter for reconsideration in light of the observations made and that identical order may be passed in the present matter also. 3. It is specifically contended that the order passed is an ex-parte order and the petitioner’s services are exempt in terms of the Mega Exemption Notification No.25/2012 dated 20.06.2012 and has drawn specific attention to Entry-14(b). 4. Admittedly, the order passed is an ex-parte order. Perused the order dated 03.07.2024 passed in W.P.No.11154/2023 and connected petitions. 5. 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 - 4 - HC-KAR NC: 2026:KHC:24073 WP No. 35759 of 2025 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? 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 - 5 - HC-KAR NC: 2026:KHC:24073 WP No. 35759 of 2025 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. 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 - 6 - HC-KAR NC: 2026:KHC:24073 WP No. 35759 of 2025 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. Accordingly, the order at Annexure-'A' dated 29.01.2025 and the order at Annexure-'B' dated 20.03.2024 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. 7. Needless to state that the petitioner is at liberty to make out a fresh reply to the show cause notice. - 7 - HC-KAR NC: 2026:KHC:24073 WP No. 35759 of 2025 8. The petitioner to appear before respondent No.3 on 25.05.2026 without waiting for further notice. 9. Accordingly, the petition is disposed of. Sd/- (S SUNIL DUTT YADAV) JUDGE VP