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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
M. NAGAPRASANNA, J.
J.B. Rent A CAR, A Sole Proprietorship Concern Represented By Its Proprietor Shri Jose Kaithamattam Bennet – Petitioner
Versus
The Joint Commissioner Of Central Tax, Bengaluru East Commissionerate, TTMC-BMTC Complex, HAL Airport Road, Domlur Bengaluru and ors. – Respondents
Writ Petition No. 15669 of 2025 (T-RES)
Decided On : 04-09-2025
| Table of Content |
|---|
| 1. petitioner seeks quashing of administrative orders. (Para 2) |
| 2. petitioner's arguments relate to past judgments. (Para 3 , 4) |
| 3. court acknowledges the validity of administrative procedures. (Para 5 , 6) |
ORDER :
M. NAGAPRASANNA, J.
Petitioner is before this Court seeking the following prayers:
“(a) Issue a writ in the nature of certiorari or any other writ/to quash the impugned Order-in-Original bearing No.91/2025 JC-1/B-East [DIN 20250257000000666C96] dated 24.02.2025 [Annexure- A] passed by the First Respondent;
(b) Grant such other order or direction as deemed fit in the facts and circumstances of the case in the interest of justice.”
2. Heard Sri. Pradyumna Hejib, learned counsel appearing for the petitioner, Sri. Aravind V Chauhan, learned counsel appearing for respondents and 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 KARNATAKA CHINMAYA SEVA TRUST vs. JOINT COMMISSIONER OF CENTRAL TAX, BENGALURU EAST , [(2024) 25 Centax 382 (Kar.)] He would submit that several of the petitions were 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 the case of KARNATAKA CHINMAYA SEVA TRUST vs. JOINT COMMISSIONER OF CENTRAL TAX, BENGALURU EAST supra, 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 Commissionerate, Bengaluru do hereby solemnly affirm and state on oath as follows:
I am working as Principal Commissioner of Central Tax, Bengaluru West and holding additional charge of Bengaluru East Commissionerate, Bengaluru -560071. I am the concerned person in the above Writ Petition. I am fully conversant with the facts of the case. I am authorized to swear to this affidavit.
1. I submit that in the above batch of cases, the dispute is regarding the Issuance of the Show Cause Notice and demand of Service Tax made on the basis of information provided by CBDT (Central Board of Direct Taxes) as per the assessee's Income Tax returns. The Service Tax Levy is on the taxable services provided by one person or Entity to another, in terms
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....
The court emphasized that service tax notices must be issued based on verified data and adherence to natural justice, reaffirming prior judicial decisions.
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 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 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.
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 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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