M/S Radiant Infra Propritory Concern v. Office of the Principal

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.

¶2It 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 Service Tax based on chargeability.

¶3It 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

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.

¶4Reliance is placed on order dated

03.07.2024 passed in W.P.No.11154/2023 and connected petitions.

¶5The factum of Service Tax being levied on the basis of income derived as is inferred, through income tax returns appears to be uncontroverted.

¶6Perused the order dated 03.07.2024 passed in W.P.No.11154/2023 and connected petitions.

¶7This 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 exemption list under 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?

¶11It is also clarified that disposal of present petitions must not be construed as having adjudicated any of contentions including jurisdiction. All contentions of both sides on merits are kept open.

¶12Needless 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.

¶13Accordingly, 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-

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."

¶8The 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.

¶9Accordingly, 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

remitted to the stage of reply to the show-cause notice.

(ii) The Authorities to take note of 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 Adjudicating Authority on

16.02.2026 without waiting for any notice.

Sd/- (S SUNIL DUTT YADAV) JUDGE

VGR

NC:(2026:KHC:4636( WP(No.(35202(of(2025( ( , ,,HC-KAR( ( ( IN(THE(HIGH(COURT(OF(KARNATAKA(AT(BENGALURU( THDATED(THIS(THE(28 (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,, ST 1 ,FLOOR,,TTMC,COMPLEX,,BMTC,BUS,STAND, BANASHANKARI, Digitally BENGALURU-560,070.,signedtiby VIDYA0G0R …RESPONDENT, Location: (BY,SRI.,JEEVAN,J.,NEERALAGI,,ADVOCATE), HIGH COURT0OF , THIS, WP, IS, FILED, UNDER, ARTICLES, 226, AND, 227, OF, KARNATAKA 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, ORAL ORDER The petitioner has sought for setting aside of the