Judgment
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CNR: KAHC010606862026 NC: 2026:KHC:47694 WP No. 27455 of 2026
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 2ND DAY OF SEPTEMBER, 2026 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 27455 OF 2026 (T-RES) BETWEEN:
MR. SUDARSHAN REDDY DHANIREDDY, AGED ABOUT 58 YEARS, NO. 942, 4TH STAGE, 1ST BLOCK, DEVERACHIKKANAHALLI, BTM LAYOUT, BENGALURU - 560076 R/O. NO. 8-3-677/27, YELLAREDDYGUDA, SRI. KRISHNADARA, RAYANAGAR, HYDERABAD, TELANGANA-560 073.
…PETITIONER (BY SRI. GOWRISHANKAR PRASAD H R., ADVOCATE) AND:
1.
THE ADDITIONAL COMMISSIONER OF CENTRAL TAX, BENGALURU SOUTH GST COMMISSIONERATE, C.R. BUILDING, P.B. NO. 5400, QUEENS ROAD, BENGALURU - 560 001.
2.
THE ASSISTANT COMMISSIONER OF CENTRAL TAX, SOUTH DIVISION -4, C-WING, 7TH FLOOR, KENDRIYA SADAN, KORAMANGALA BENGALURU - 560034.
Digitally signed by VANAMALA N Location:
HIGH COURT OF KARNATAKA
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CNR: KAHC010606862026 NC: 2026:KHC:47694 WP No. 27455 of 2026
3.
THE PRINCIPAL COMMISSIONER OF CENTRAL TAX, BENGALURU SOUTH COMMISSIONERATE, C.R. BUILDING, QUEENS ROAD, BENGALURU - 560001.
4.
THE COMMISSIONER OF CENTRAL TAX (APPEALS-1), TTMC/BMTC BUILDING, DOMLUR, BENGALURU - 560 071.
…RESPONDENTS (BY SRI.ARAVIND V CHAVAN., ADVOCATE)
THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO- QUASHING THE IMPUGNED ORDER IN ORIGINAL BEARING NO. 159/2022-23 DATED 06.02.2023 DIN NO.
2023025700000000EE14 PASSED BY THE ADDITIONAL COMMISSIONER OF CENTRAL TAX BENGALURU SOUTH GST COMMISSIONERATE, BENGALURU VIDE ANNX-A, (THE R1) CONSEQUENTLY SUMMARY OF THE ORDER CREATING DEMAND UNDER GST ACT IN FORM GST DRC-7A BEARING REFERENCE NO. ZD291225038598X DATED 04.12.2025 ISSUED BY THE ASSISTANT COMMISSIONER OF CENTRAL TAX SOUTH DIVISION-4 BENGAURU VIDE ANNX-B (THE R2); ALTERNATIVELY CON DONATION OF DELAY IN FILING THE STATUTORY APPEAL AND A WRIT OF MANDAMUS DIRECTING THE
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CNR: KAHC010606862026 NC: 2026:KHC:47694 WP No. 27455 of 2026
COMMISSIONER OF CENTRAL TAX (APPEALS -1) BENGALURU THE R4 TO HEAR THE MATTER ON MERITS WITHOUT PRESSING UPON THE LIMITATION ISSUE.
THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD
ORAL ORDER
The petitioner has called in question the Order- in-original dated 06.02.2023 [Annexure-A] under Section 73 of the Finance Act, 1994, and this Adjudication Order is based on the information received from the Central Board of Direct Taxes. Sri Gowrishankar Prasad H R, the learned counsel for the petitioner, submits that the petitioner is not served with a Show Cause Notice and if the petitioner was served with a Show Cause Notice, the petitioner could have shown that the Returns in the Income Tax Returns are from trading in farm products that are exempted from ‘Goods and Services Tax’.
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CNR: KAHC010606862026 NC: 2026:KHC:47694 WP No. 27455 of 2026
Sri Gowrishankar Prasad H R emphasizes that this Court, in similar circumstances, has restored the proceedings for reconsideration with an opportunity to file a detailed Response and produce documents, and the learned counsel relies upon the decision of this Court in M/s. Karnataka Chinmaya Seva Trust Vs. Joint Commissioner of Central Tax in W.P. No.11154/2023 and connected matters dated 03.07.2024 and also the Order dated 28.08.2025 in the writ petition in W.P. No.24577/2025.
Sri Aravind V Chavan, a learned standing counsel for the respondents who is called upon to accept notice for the respondents, is heard for disposal of the petition in the light of the afore. The first respondent has recorded in paragraph-7 of the impugned Order that the petitioner has not filed a Response or attended the personal hearings. This Court is persuaded to opine that it is crucial that whether the turnover of the petitioner’s services
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CNR: KAHC010606862026 NC: 2026:KHC:47694 WP No. 27455 of 2026
[trading in farm products] would be exigible to service tax is not examined and there must be due consideration of this aspect before there can be sustainable liability. In the light of the afore, the following:
ORDER [A] The petition is allowed in-part and the first respondent’s impugned Order-in- Original dated 06.02.2023 [Annexure- A] is quashed restoring the proceedings to the first respondent for reconsideration.
[B] The petitioner shall file response, if any, with the first respondent by 08.10.2026 without further notice, without waiting for a certified copy of this order.
[C] The first respondent shall consider all the circumstances without non-
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CNR: KAHC010606862026 NC: 2026:KHC:47694 WP No. 27455 of 2026
suiting the petitioner on the ground of delay.
Sd/- (B M SHYAM PRASAD) JUDGE
AN/-