M/S Sri Datta Sai Security Enterprises v. Joint Commissioner of Central Tax

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-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."

¶9It 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.

¶10Accordingly, the order-in-original dated

22.09.2022 at Annexure-A is 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.

¶11Needless to state, the petitioner is at liberty to make out a fresh reply to the show cause notice.

¶12The petitioner to appear before respondent No.1 without further notice on 21.04.2026.

¶13In light of setting aside of the order-in-original, the amount recovered pursuant to the impugned order at

Annexure-A is subject to outcome of the adjudication as directed.

¶14Needless to state, in light of setting aside the order at Annexure – A, the bank attachment issued for the purpose of recovery is to be rescinded forthwith by the respondent-Authority,

¶15All other contentions are kept open.

¶16Accordingly, the petition is disposed of.

¶17The respondent-Authority may expedite the adjudication.

SD/- (S SUNIL DUTT YADAV) JUDGE

KTY List No.: 3 Sl No.: 6

NC:(2026:KHC:16269( WP(No.(3152(of(2026( ( , ,,HC-KAR( ( ( IN(THE(HIGH(COURT(OF(KARNATAKA(AT(BENGALURU( RDDATED(THIS(THE(23 (DAY(OF(MARCH,(2026( BEFORE( THE(HON'BLE(MR.(JUSTICE(S(SUNIL(DUTT(YADAV( WRIT(PETITION(NO.(3152(OF(2026((T-RES)( BETWEEN:(( ( M/S,SRI,DATTA,SAI,SECURITY,ENTERPRISES, REPRESENTED,BY,, SHRI,VENKATARAMAPPA,NAGESH,NARLURL, AGED,ABOUT,56,YEARS, BEARING,GSTIN,29ADRPN6325RIZG, BEARING,SERVICE,TAX,ADRPN6325R, BEARING,PAN,ADRPN6325R, NO,3/1,,SASTHA,NILAYAM,,12,CROSS,,1,STAGE,, INDIRANAGAR,,BENGALURU,560,038, (PROPRIETORSHIP,CONCERN), , …PETITIONER, (BY,SRI.,HARISH,VASHISTH.,ADVOCATE), , AND:( ( 1., JOINT,COMMISSIONER,OF,CENTRAL,TAX,, OFFICE,OF,PRINCIPAL,COMMISSIONER,OF,CENTRAL,TAX,Digitallytisigned by0SHWETHA BENGALURU,EAST,,, RAGHAVENDRA TTMC/BMTC,,DOMLUR,,, Location:0HIGH BANGALURU,-,560,071,,COURT0OF ,KARNATAKA 2., ADDITIONAL,COMMISSIONER,OF,CENTRAL,TAX, OFFICE,OF,PRINCIPAL,COMMISSIONER,OF,CENTRAL,TAX,, BENGALURU,EAST,,TTMC/BMTC,, DOMLUR,,BANGALURU,-,560,071., , 3., BANK,MANAGER,(BRANCH), BANK,OF,BARODA,,35,CHM,ROAD,,, INDIRANAGAR,,, BENGALURU,-,560,038, , …RESPONDENTS, NC:(2026:KHC:16269( WP(No.(3152(of(2026( ( , ,,HC-KAR( ( ( (BY,SRI.,JEEVAN,J.,NEERALGI.,,ADVOCATE,FOR,R1,&,R2), , , THIS,WRIT,PETITION,IS,FILED,UNDER,ARTICLES,226,AND,227, OF, THE, CONSTITUTION, OF, INDIA, PRAYING, TO, ISSUE, A, WRIT, OF, CERTIORARI,, OR, ANY, OTHER, APPROPRIATE, WRIT, TO, QUASH, THE, EX-PARTE, ORDER-IN-ORIGINAL, NO.200/JC/B-EAST/2022,, DATED, 22.09.2022,, OF, THE, JOINT, COMMISSIONER, OF, CENTRAL, TAX, (RESPONDENT-4),,ATTACHED,AS,ARISING,OF,SHOW,CAUSE,NOTICE, (SCN), NO.44/2021-22/JC,, DATED, 24.04.2022,, HEREWITH, PRODUCED,AS,ANNEXURE-A,OR,IN,ALTERNATE,AND,ETC., , , THIS, WRIT, PETITION,, COMING, ON, FOR, PRELIMINARY,, HEARING,,THIS,DAY,,ORDER,WAS,MADE,THEREIN,AS,UNDER:, , CORAM:, HON'BLE,MR.,JUSTICE,S,SUNIL,DUTT,YADAV, , ORAL(ORDER( , The, petitioner, has, sought, for, issuance, of, writ, of, certiorari,to,set,aside,the,ex-parte,order-in-original,dated, 22.09.2022,at,Annexure–A., 2. The, petitioner, has, also, sought, for, issuance, of, writ, of, mandamus, by, way, of, direction, to, re-do, the, adjudication, afresh, after, affording, an, opportunity, to, the, petitioner., 3. It, is, the, case, of, the, petitioner, that, the, impugned, order, raising, a, demand, upon, adjudication, regarding, service,tax,by, passing,an, order, under, Section, 73(2),of,the,Finance,Act,,1994,,was,based,on,information, provided by the Central Board of Direct Taxes (CBDT), and in similar matters, this Court has been remitting the matter back for reconsideration in certain directions as has been done in W.P.No.11154/2023. 4. It is submitted that on the same ground, the matter may be remitted back for reconsideration. 5. It is specifically asserted that the demand raised by virtue of adjudication is not legally tenable as service rendered would come outside the purview of taxability by virtue of exemption claimed that could be traced back to the notification No.25/2012. 6. It is further submitted that the order passed was an ex-parte order and the petitioner, if afforded an opportunity, would demonstrate the service to be exempt. 7. Perused the order dated 03.07.2024 passed in W.P.No.11154/2023 and connected petitions. 8. 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? 4) Whether the person is liable to remit service tax in terms of Rule 2 (1) (d) read with applicable notificatio