M/S. Silicon Valley High School (R) vs. Commissioner Of Central Tax (Appeal)-1

CGST-DIV- 4-COMMERTE- BENGALURU(S), ORDER SL. NO. 12/2022 4 2185/22 AND DIN NO. 20220857000000015680 WHICH WAS PASSED ON 04.08.2022 AND ISSUED ON 10.08.2022 BY THE 2ND RESPONDENT UNDER CHAPTER V OF THE FINANCE ACT, 1994 (ANNEXURE B ); QUASHING THE IMPUGNED DEMAND NOTICE/RECOVERY LETTER DATED 15.09.2025 BEARING FILE NO. GEXCOM/TAR/D/GST/3471/2025-CGST-RANGE-E 4- DIV- 4 AND DIN NO. 2025095700000000B922/ 1105/25 WHICH WAS ISSUED ON 15.09.2025 BY THE HC-KAR NC: 2026:KHC:33977 3RD RESPONDENT UNDER CHAPTER V OF THE FINANCE ACT, 1994 (ANNEXURE G ); (IV) ALTERNATIVELY, QUASHING THE IMPUGNED ORDER IN APPEAL DATED 05.04.2024 BEARING DIN NO. 2024045700000000B256, DOCUMENT NO. C.NO. GAPPL/COM/STP/1129/2024- APPEAL PASSED BY THE 1ST RESPONDENT IN APPEAL BEARING NO. A. NO. 216/2023 A-1 UNDER CHAPTER V OF THE FINANCE ACT, 1994 WHICH IS AT ANNEXURE A AND REMAND THE APPEAL TO THE FILE OF THE 1ST RESPONDENT; (V) CONSEQUENTLY, DIRECT THE 1ST RESPONDENT TO CONSIDER THE APPLICATION DATED 07.10.2022 SEEKING STAY OF DEMAND CUM WAIVER OF PRE-DEPOSIT WHICH IS FILED BY THE PETITIONER ON 11.10.2022 (ANNEXURE F-3).

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's grievance is with the Order-in- Original dated 10.08.2022 under the Finance Act, 1994 [for short, ‘the Act’] [Annexure-A] and the subsequent Order-in-Appeal dated 05.04.2024 [Annexure-B]. The petitioner's appeal against the Order-in-original is rejected on the ground that the petitioner has not offered the pre-deposit at 7.5%. The petitioner has applied for the waiver of the deposit asserting that the services offered would be HC-KAR NC: 2026:KHC:33977 covered under the relevant notification and the exclusion under the Negative List. The petitioner has averred in the writ petition that notwithstanding the stand taken with the appellate authority, the petitioner will offer to make the pre-deposit.

Sri Sandeepani A. Neglur, the learned counsel for the petitioner, submits that he canvasses for this Court's intervention with both the Order-in-Appeal and the Order-in-Original to the stage of restoration of the proceedings with an opportunity to the petitioner to file a response to the Show Cause Notice dated 15.04.2021 notwithstanding the statement to pay the pre-deposit and for restoration of the appeal. The learned counsel submits that his request for restoration of the proceedings to the stage is in the light of the Court's decision in M/s. Karnataka Chinmaya Seva Trust v. Joint Commissioner of Central Taxes in Writ Petition No.11154/2023 and connected matters [disposed of on 03.07.2024]. HC-KAR NC: 2026:KHC:33977 Sri Aravind V Chavan, a learned standing counsel for the respondents who accepts notice, is heard. The commencement and the conclusion of the proceedings under Section 85 of the Act are in the circumstances similar to the circumstances considered by this Court in Karnataka Chinmaya Seva Trust [supra], and the petitioner submits that its services would be exempted under the Notification in No.26/2012 and the relevant provisions of the Act as well. With these circumstances, this Court is of the view, in the interest of justice, that this Court must interfere with both the Order-in-Appeal and the Order-in-Original with liberty to the petitioner to file response to the Show Cause Notice dated 15.04.2021 but on terms. Hence, the following: ORDER

The petition is allowed-in-part and the impugned Order-in-Appeal dated 05.04.2024 [Annexure-A] and the Order-in- HC-KAR NC: 2026:KHC:33977 Original dated 10.08.2022 [Annexure-B] are quashed restoring the proceedings to the second respondent with liberty to the petitioner to file response, if any, by 13.08.2026 even without waiting for a certified copy of this order. (B M SHYAM PRASAD) JUDGE

SA Ct:sr