Sri K M Sundar Murthy vs. The Principal Commissioner Of Central Tax
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The petitioner, Sri K.M. Sundar Murthy, proprietor of M/s. S.M. Engineers, filed a writ petition challenging a Show Cause Notice (SCN) dated December 30, 2020, issued by the Principal Commissioner of Central Tax, Bangalore GST West Commissionerate, and the consequential Order-in-Original dated December 26/27, 2024, passed by the same authority. The petitioner sought to quash these documents and set aside the demand for service tax, interest, penalty, and late fee. Alternatively, the petitioner prayed for the Order-in-Original to be quashed and the matter remanded for fresh adjudication of the SCN.
Held
The High Court of Karnataka, in this case, followed a coordinate bench's judgment in M/s. Karnataka Chinmaya Seva Trust Vs. Joint Commissioner of Central Tax (WP No.11154/2023 & connected matters dated 03.07.2024). The Court held that writ petitions challenging Orders-in-Original would be set aside and the matters would be relegated to the designated officers for reconsideration from the stage of the show-cause notice. Consequently, the impugned Order-in-Original at Annexure-B was set aside, and the matter was remitted back for reconsideration to the stage of the show cause notice at Annexure-A. The petitioners were granted liberty to file their pleadings within a reasonable time fixed by the concerned officers.
Key Issues
1. Whether the impugned Show Cause Notice and the consequential Order-in-Original are liable to be quashed and set aside, thereby quashing the service tax demand, interest, penalty, and late fee, in terms of the petitioner's primary prayer? 2. Alternatively, whether the impugned Order-in-Original is liable to be quashed and the matter remanded for fresh adjudication of the Show Cause Notice? Petitioner's Contention: The petitioner sought to quash the SCN and the Order-in-Original, and set aside the demands. Alternatively, the petitioner sought a remand for fresh adjudication. Respondent's Contention: The respondent issued the SCN and the Order-in-Original, seeking to recover service tax, interest, penalty, and late fee.
Sections Cited
Not specified in the judgment
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
ORAL ORDER In this petition, the petitioner seeks the following reliefs: a) Issue a writ or order or direction in the nature of Certiorari by quashing the impugned show cause notice bearing SCN No.201/2020 BW AE-VI [F.No. GEXOM/AE/INV/ST/643/2020-AE (DIN: 20201257YU00 00520119)] dated 30.12.2020 (Annexure-'A') issued by the Respondent and the consequential Order-in-Original No.49/2024-25 (Pr. COMMR) (DIN: 20241257YU0000 222C4C) dated 26.12.2024 / 27.12.2024 passed by the Respondent (Annexure- 'B') by setting aside the service tax demand, interest, penalty and late fee; b) Alternatively, issue a writ or order or direction in the nature of Certiorari by quashing the impugned Order-in-Original No.49/2024-25 (Pr. COMMR) (DIN: 20241257YU0000222C4C) dated 26.12.2024 / 27.12.2024 passed by the Respondent (Annexure- 'B') and thereby remand the matter for fresh adjudication of the impugned show cause notice bearing SCN No.201/2020 BW AE-VI GEXOM/AE/INV/ST/643/2020-AE [F.No. (DIN: 20201257YU0000520119)] dated 30.12.2020 issued by the Respondent (Annexure- 'A'); c) Pass such other order/s or direction/s as deemed fit and proper in the facts and circumstances of the case in the interest of justice.”
Heard learned counsel for the petitioner and learned counsel for the respondent and perused the material on record.
Though several contentions have been urged by both sides in support of their respective claims, the issue in controversy NC: 2025:KHC:17597 between the parties is directly and squarely covered by the judgment of the Co-ordinate Bench of this Court in the case of M/s.Karnataka Chinmaya Seva Trust Vs. Joint Commissioner of Central Tax in WP No.11154/2023 & connected matters dated 03.07.2024, wherein it was held as under; "
Accordingly, 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 NC: 2025:KHC:17597 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."
Under these circumstances, the present petition is also disposed of in terms of the aforesaid judgment of the Co-ordinate Bench of this Court.
Accordingly, the impugned Order-in-original at Annexure – B dated 26.12.2024/27.12.2024 is hereby set aside and the matter is remitted back for reconsideration to the stage of show cause notice at Annexure-A dated 30.12.2020. Ordered accordingly. (S.R.KRISHNA KUMAR) JUDGE
MDS List No.: 1 Sl No.: 91
Reproduced from the public record of the Karnataka High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.