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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
M. NAGAPRASANNA, J.
M/s. Arushi Green Energy (India) Private Limited - Appellant
Versus
The Principal Commissioner of Central Tax, Bengaluru - Respondent
Writ Petition No. 22279 of 2025
Decided On : 08-09-2025
| Table of Content |
|---|
| 1. petitioner seeks quashing of notices and orders. (Para 1) |
| 2. counsel presents case related to past similar judgments. (Para 2 , 3 , 4) |
| 3. details of the show-cause notice process and affidavits. (Para 5 , 6) |
| 4. order quashing the impugned notices and remitting matters. (Para 7) |
ORDER :
1. Petitioner is before this Court seeking the following prayers:
“i. Issue a writ of Certiorari or in like nature of writ quashing the impugned Show Cause Notice dated 20.04.2021 bearing DIN no.20210457YU0000057523, passed against the petitioner, at ANNEXURE – ‘C' passed by Respondent no.3.
ii. Issue a Writ of Certiorari or in the like nature of writ, quashing the impugned order dated 29.02.2024 bearing DIN- 20240257YU0000510985, passed against the petitioner, vide ANNEXURE - "E" passed by Respondent no.2.
iii. Issue a Writ of Prohibition or any other writ of like nature, directing the respondent not to proceed with coercive steps by way of any proceedings of whatsoever in nature, in respect of the impugned order dated 29.02.2024 vide ANNEXURE - E passed by Respondent no. 2.
iv. Pass such other or further orders as this Hon'ble Court may deems fit in the facts and circumstances of the case, in the interests of justice and equity.”
2. Heard Sri.Vijay Kumar A, learned counsel appearing for the petitioner, Sri.Aravind V. Chavan, learned counsel appearing for the respondents and have perused the material on record.
3. Learned counsel for the petitioner submits that the issue in the lis is akin to what is decided by the Coordinate Bench in W.P. No. 11154/2023 and W.P. No. 15959/2021 and connected matters, between M/s Karnataka Chinmaya Seva Trust vs. Joint Commissioner of Central Tax and Another disposed on 03.07.2024. He would submit that several of the petition was disposed in the same terms.
4. Learned counsel for the Revenue would not dispute the position.
5. I, therefore deem it appropriate to notice what the Coordinate Bench has held in W.P.No.11154/2023 (T-IT) C/w W.P.No.15959/2021 (T-RES) and connected matters, between M/s Karnataka Chinmaya Seva Trust vs. Joint Commissioner of Central Tax and Another disposed on 03.07.2024, which reads as follows:
“2. In all these matters, the proceedings by way of show-cause notice under the FINANCE ACT for service tax liability have been initiated on the basis of inputs received from the Central Board of Direct Taxes on the basis of Form 26AS/Income Tax returns filed.
3. The details of the writ petitions and the stages are as follows:
| Challenge to Show-cause Notice | Challenge to Orders-in-Original |
| Column No.1 | Column No.2 |
| WP No.16891/2022 | WP No.12840/2023 |
| WP No.13445/2023 | WP No.15832/2022 |
| WP No.15959/2021 | WP No.3318/2023 |
| WP No.24822/2022 | WP No.14425/2022 |
| WP No.8514/2023 | WP No.15018/2022 |
| WP No.24650/2022 | |
| WP No.12906/2023 | |
| WP No.22063/2022 | |
| WP No.19792/2022 | |
| WP No.25156/2022 | |
| WP No.5896/2023 | |
| WP No.17407/2023 | |
| WP No.11154/2023 | |
| WP No.9765/2022 | |
| WP No.17591/2022 | |
| WP No.1754/2023 | |
| WP No.8858/2023 | |
| WP No.16501/2023 | |
| WP No.7071/2023 | |
| WP No.9906/2023 | |
| WP No.8409/2023 | |
| WP No.8184/2023 | |
| WP No.16170/2022 | |
| WP No.1198/2024 | |
| WP No.14092/2023 | |
| WP No.341/2023 | |
| WP No.274/2023 | |
| WP No.12003/2022 | |
| WP No.13813/2022 | |
| WP No.7829/2023 | |
| WP No.20282/2022 | |
| WP No.19000/2022 | |
| WP No.8336/2023 | |
| WP No.10238/2023 | |
| WP No.6756/2024 |
4. After having heard the matters on various occasions, the Union of India have taken a stand and filed affidavit of the Principal Commissioner, Central Taxes.
5. Sri.N.Venkataraman, learned Additional Solicitor General who was present before the court on 27.06.2024 had submitted that they desire that the matters be resolved and accordingly have putforth a proposed mechanism and made certain suggestions in the affidavit filed. The relevant extract of the affidavit filed by the Principal Commissioner of Central Tax, presently holding charge of Bengaluru West and additional charge of Bengaluru East Commissionerate reads as hereunder:
"I, Kiran Verma, working as Principal Commissioner of Central Tax, presently holding charge of Bengaluru West and additional charge of Bengaluru East
The court affirmed the need for procedural fairness in tax assessments and allowed petitions alleging unjust show-cause notices to be reassessed at the agency level per established legal principles.
The court highlighted the necessity of compliance with statutory requirements by tax authorities when issuing notices, promoting adherence to principles of natural justice.
The court emphasized that service tax notices must be issued based on verified data and adherence to natural justice, reaffirming prior judicial decisions.
Reliance on third-party data for issuing Show Cause Notices is valid, and petitioners must adhere to statutory compliance regarding service tax obligations.
Tax authorities can rely on data from the Income Tax Department for service tax demands, provided statutory provisions are observed; show-cause notices should be seen as valid unless grossly erroneou....
Reliance on third-party data from tax authorities for service tax assessments is valid, and procedural regularity was upheld in the issuance of show-cause notices.
The court quashed the show-cause notice and orders, emphasizing reassessment of service tax liabilities based on legislative compliance and prior case law, without pre-issuance inquiry necessary.
The court emphasized the necessity for designated officers to reconsider service tax compliance matters, underscoring procedural adherence in issuing show-cause notices under the Finance Act, 1994.
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