M/S. National Academy For Learning (Nafl Trust) vs. Directorate General Of GST Intelligence

In terms of the show cause notice at Annexure- A, the respondent - Authorities had sought to raise a demand and levy GST with respect to the petitioner trust which is stated to be running an international school and accordingly involved in educational activities. The present petition was filed raising various contentions including that the show cause notice is one without juri iction as the HC-KAR NC: 2026:KHC:1335 Court in W.A.No.856/2022 in the case of Principal Additional Director General and others vs. M/s. Rajiv Gandhi University of Health Sciences has held that educational activities cannot be subjected to levy of service tax. It is further submitted that the said order of the Division Bench was taken up before the Apex Court in SLP Civil Diary No. 59470/2024 and the said special leave petition came to be dismissed, thereby affirming the order of the Division Bench. Accordingly, it is submitted that the show cause notice dated 24.06.2025 was one without juri iction.

The matter was moved before the vacation bench and an interim order came to be passed on 23.12.2025 which reads as follows: "Sri. Aravind V. Chavan, learned counsel is directed to take notice for respondent Nos. 1 and 2. Registry to show his name in the cause list. Copies to be furnished to him. Re-list this matter on 08.01.2026. The respondents are directed not to take any coercive steps, till the next date of hearing. HC-KAR NC: 2026:KHC:1335 One week time is granted to rectify the office objections. Hand delivery is permitted."

It is the case of the petitioner that despite such interim order being passed, the authorities have proceeded to adjudicate and pass an order-in-original, a copy of which is produced along with a memo. It is submitted that such order requires to be set aside as being in violation of the interim order of this Court dated 23.12.2025 and such order, in effect has been passed violating the interim order passed.

Sri. Aravind V. Chavan, learned counsel submits that there may have been some lapse in light of the array of parties in the writ petition, but however submits that there was no intention to disobey the order of this Court. It is further submitted that even on merits noticing that the order-in-original is an ex-parte order, the Court may pass appropriate orders. HC-KAR NC: 2026:KHC:1335

Taking note of the contentions raised by the petitioner as noticed above while placing reliance on W.A.No.856/2022, it would be appropriate to remand the matter back for re-adjudication by the authority taking note of the contention of the petitioner that the activity of the petitioner is 'educational activity'. By virtue of the order passed in W.A.No.856/2022, the authority is directed to dispose of the proceedings in accordance with law.

Taking note that the order-in-original is passed during the pendency of the present petition in which there was an interim order passed on 23.12.2025, it would be appropriate to set aside the order-in-original and accordingly, the order-in-original dated 31.12.2025 passed by the Assistant Commissioner, West Division-3 is set aside and the matter is remitted to the stage of reply to the show cause notice. The petitioner is permitted to make out reply and the respondent - authorities while proceeding further are also directed to consider the legal HC-KAR NC: 2026:KHC:1335 position as asserted by the petitioner in the present writ petition and as may be placed before the authority by way of reply.

Accordingly petition is disposed of. All contentions on merits are kept open. (S SUNIL DUTT YADAV) JUDGE VP