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IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD

THE HON’BLE SRI JUSTICE P. SAM KOSHY AND

THE HON’BLE SRI JUSTICE NARSING RAO NANDIKONDA WRIT PETITION No.10232 of 2026

DATE: 07.04.2026 Between

M/s. Gopal Reddy Contractor …Petitioner

AND The Joint Commissioner,

Office of the Commissioner of Central Tax, Rangareddy GST Commissionerate, GST Bhavan,

VIP Hills, Jaihind Enclave, Madhapur, Hyderabad-500081 and 4 others

…Respondents

O R D E R: (As per the Hon’ble Sri Justice P. Sam Koshy)

Heard Mr. Kohir Bhaskar Reddy, learned counsel

appearing for the petitioner, Mr. Dominic Fernandes, learned Senior Standing Counsel for CBIC appearing for respondent Nos.1 to 3 and Mr. N. Bhujanga Rao, learned Deputy Solicitor General of India appearing for respondent

No.4.

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2. The instant writ petition has been filed by the petitioner under Article 226 of the Constitution of India seeking the

following relief/s, viz.,

“....issue Writ of Mandamus or any other appropriate Writ or Order or Direction declaring the Order in-Original No. 73/2023-24-Adjn(ADC)-ST, dated 24.11.2023 passed by the Respondent for the tax period 2016-17 and 2017-18 (Upto June 2017) levying alleged Service Tax of Rs.1,09,21,028/- under Section 73(2), Penalty under Section 78 of the Finance Act, 1994 of Rs.1,09,21,028/-, Interest at the applicable rates on the amount mentioned under Section 75 of the Finance Act, 1994, the Penalty of Rs.10,000/- under Section 77 (2) of the Finance Act, 1994, and Late Fees to a tune of Rs.60,000/- as per Section 70(1) of the Finance Act, 1994, without considering the objections of the Petitioner dated 12.05.2022 and without providing the opportunity of personal hearing, though the Petitioner is not liable to pay tax under the Provisions of the Finance Act, 1994, as per exempt mega Notification No.25/2012-ST dated 20.06.2012 as amended from time to time, is arbitrary, illegal, violative of principles of natural justice, contrary to the Provisions of the Finance Act 1994, without jurisdiction and contrary to Article 14, 19(1) (g), and 265 of the Constitution of India and consequently, set aside the Order-in- Original No. 73/2023-24-Adjn(ADC)-ST dated 24.11.2023 passed by the 1st Respondent, and pass such other Order or

Orders in the interest of justice.”

3. Though the impugned order was passed on 24.11.2023, the present Writ petition has been filed on the sole ground that the impugned order which has been passed was in violation of principles of natural justice. So far as the ground of principles of natural justice is concerned, according to the

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petitioner, he was a contractor who had executed certain works during the relevant period, i.e., 2016-17 and 2017-18. All the works herein undertaken were that of the State Government and by virtue of the notification No.25/2012-ST dated 20.06.2012, the nature of work that the petitioner had undertaken was one which stood exempted from payment of Service Tax. As such, the petitioner was not liable for the levy

of service tax for the nature of work that he had executed.

4. A show cause notice was issued by respondent No.2 to the petitioner on 28.04.2022. According to the petitioner, the show cause notice was issued at the address where the petitioner was having its establishment before 2019. However, because of certain losses that the establishment suffered, the entire business was closed down and the petitioner has

vacated the said premises and shifted to a different location.

5. Consequently, the show cause notice was served at the earlier location i.e., M/s. Gopal Reddy, Plot No.31, Kisan nagar, Bhageeratha Colony, Mahabubnagar, Telangana. However, some official in the department who was acquainted to the petitioner had given a telephonic intimation of the show

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cause notice. The petitioner thereafter entered appearance and submitted a detailed reply on 09.05.2022,