Sri Bal Kishan Agarwal v. The Assistant Commissioner Central Tax

e -e1e-eeeee e e NC:(2026:KHC:19480 WP(No.(9013(of(2026 IN(THE(HIGH(COURT(OF(KARNATAKA(AT(BENGALURU( THDATED(THIS(THE(8 (DAY(OF(APRIL,(2026( BEFORE( THE(HON'BLE(MR.(JUSTICE(S(SUNIL(DUTT(YADAV( WRIT(PETITION(NO.(9013(OF(2026((T-RES) BETWEEN:(

1., SRI,BAL,KISHAN,AGARWAL, PROP.,OF,M/S.,HARI,OM,STORES, S/O,FUL,CHAND,AGARWAL, AGED,ABOUT,59,YEARS,, OPP.,L,AND,T,CITY,APARTMENT,, TH NDNO.155,,4 ,CROSS,,2 ,STAGE,, AREKERE,MICO,LAYOUT,, B.G.ROAD,,BENGALURU-560,076., …,PETITIONER, (BY,SRI.,ARUNA,BHAT,,ADVOCATE), AND: Digitally signedtiby 1., THE,ASSISTANT,COMMISSIONER,,PRAKASH0N Location: CENTRAL,TAX,,SOUTH,DIV-4,,, HIGH COURT0OF BENGALURU,SOUTH,COMMISSIONERATE,, KARNATAKA TH C,WING,,7 ,FLOOR,,KENDRIYA,SADAN,, KORAMANGALA,,BENGALURU-560,034,

2., THE,COMMISSIONER, CENTRAL,TAX,,, SOUTH,DIV-4,,BENGALURU,SOUTH, COMMISSIONERATE,, THC,WING,,7 ,,FLOOR,,KENDRIYA,SADAN,, KORAMANGALA,,BENGALURU-560,034., e -e2e-eeeee e e NC:(2026:KHC:19480 WP(No.(9013(of(2026

3., MINISTRY,OF,FINANCE,, REP.BY,ITS,SECRETARY,, DEPARTMENT,OF,REVENUE,, NEW,DELHI-11001., …,RESPONDENTS, (BY,SRI.,ARAVIND,V.,CHAVAN,,ADVOCATE), , THIS,W.P.,IS,FILED,UNDER,ARTICLES,226,AND,227,OF, THE,CONSTITUTION,OF,INDIA,,PRAYING,TO,ISSUE,A,WRIT,IN, THE, NATURE, OF, CERTIORARI,, ORDER, OR, DIRECTION, QUASHING, THE, IMPUGNED, ORDER, IN, ORIGINAL, SI.NO.17/2021,SD-4,DATED,15.02.2021,ANNEXURE-A,PASSED, BY,THE,RESPONDENT,NO.1,FOR,THE,FINANCIAL,YEAR,2014-15, (ASSESSMENT, YEAR, 2015-16), VIDE, RECOVERY, INTIMATION, DATED, 27.02.2026, FILE, NO., NO.GEX, COM, /TECH/MISC/, 2219/2025-CGST-DIV-SD-4-COMMRTE, 126/26,, ALLEGING, SERVICE,TAX,DEMAND,AMOUNT,OF,RS.13,07,933/-,,PENALTY, UNDER, S.78, RS.13,07,933, AND, PENALTY, UNDER, S.77, RS.40,000/-,TOTALLY,AMOUNTING,TO,RS.26,55,866/-,ALONG, WITH,INTEREST,UNDER,S.75,OF,THE,FINANCE,ACT,,1994,TILL, THE,DATE,OF,ACTUAL,PAYMENT,AND,ETC., , THIS,PETITION,,COMING,ON,FOR,FRESH,MATTERS,LIST,, THIS,DAY,,ORDER,WAS,MADE,THEREIN,AS,UNDER:, CORAM:, HON'BLE,MR.,JUSTICE,S,SUNIL,DUTT,YADAV, ORAL(ORDER Sri.Aravind, Chavan,, learned, counsel, accepts, notice, for,the,respondents.,,

1.,,The,petitioner,has,called,in,question,the,validity, of, the, Order-in-Original, at, Annexure-A, and, submits, that,

the authority while adjudicating the proceedings in terms of the Finance Act, 1994, in order to raise demand regarding service tax has relied on the inputs received from the Central Board of Direct Taxes ('CBDT', for short).

¶2It is submitted that in similar cases, the authorities in order to raise demand of service tax have relied on the inputs received from CBDT.

¶3This Court in W.P.No.11154/2023 and connected matters dated 03.07.2024 has set aside the order and remitted the matter back for reconsideration in terms of the observations made in the said order.

¶4Learned Counsel for petitioner submits that the proceedings are ex parte and the petitioner did not have opportunity to make out reply.

¶5It is further submitted that the question of raising any demand relating to service tax is inapplicable as petitioner carries on business of retail trading of provisions

and grocery items in a Provision Store. As it involves sale of goods, the question of invoking liability of service tax does not arise.

¶6Perused the order passed in W.P.No.11154/2023 and connected matters dated 03.07.2024. Para 10 of the order reads as under: "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 ? "

¶7In light of the contentions raised and observations made in W.P.No.11154/2023 and connected matters dated

03.07.2024, the Order-in-Original at Annexure-A is set aside and the matter is remitted to the stage of reply to the show-cause notice.

¶8Petitioner to appear before the respondent no.1 without further notice on 18.05.2026.

¶9Accordingly, the petition is disposed of. SD/- (S SUNIL DUTT YADAV) JUDGE NP