Sachin Dyavangouda Patil Vs the Deputy Commissioner of Central Tax

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF CERTIORARI QUASHING THE IMPUGNED SHOW CAUSE NOTICE IN SCN SL NO.62/2020-21(ST), DATED 24/12/2020 ISSUED BY RESPONDENT NO.1 IS ENCLOSED AND MARKED AS ANNEXURE-A AND ETC.

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THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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NC: 2026:KHC-D:823 WP No. 109134 of 2025

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HC-KAR

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CORAM: THE HON'BLE MRS JUSTICE K.S.HEMALEKHA

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ORAL ORDER

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The petitioner has approached this Court seeking to quash the show cause notice dated 24.12.2020 issued by respondent No.1 (Annexure-A), Order-In-Original dated 28.02.2023 passed by respondent No.2 (Annexure-C) and also the Order-In-Appeal dated 27.09.2024 passed by respondent No.3 (Annexure-E).

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2. Brief facts fo the case:

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2.1. The petitioner is engaged in agriculture support services, including operating Excavators for agricultural operations, which were claimed to be exempt from levy of service tax.

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2.2. A show cause notice dated 24.12.2020 was issued proposing demand of service tax for the period 2014-15 to 2016-17, primarily on the basis of Income Tax/Central Board of Direct Taxes (CBDT) data and ST-3 returns.

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NC: 2026:KHC-D:823 WP No. 109134 of 2025

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HC-KAR

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2.3. Despite the petitioner's reply, the Order-InOriginal dated 28.02.2023 confirmed the demand.

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2.4. The appeal preferred by the petitioner came to be rejected on the ground of limitation by the Order-In-Appeal dated 27.09.2024 without entering into merits.

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2.5. Aggrieved, the petitioner has approached this Court contending that the proceedings initiated solely on Income Tax data and without independent determination are unsustainable.

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Heard the learned counsel for the petitioner, learned counsel for the respondents and perused the records.

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Learned counsel for the petitioner submits that the controversy involved in the present writ petition is squarely covered by the decision of this Court in Karnataka Chinmaya Seva Trust Vs. Joint

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NC: 2026:KHC-D:823 WP No. 109134 of 2025

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HC-KAR

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Commissioner of Central Tax, Bengaluru East¹

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(Karnataka Chinmaya Seva Trust) , and that the impugned proceedings are liable to be set aside in terms thereof.

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Learned counsel for the respondents does not dispute that the issue stands concluded by the said decision.

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The Co-ordinate Bench of this Court in Karnataka Chinmaya Seva Trust’s case dealt with the validity of service tax, show cause notices and adjudication orders issued solely on basis of CBDT/Income Tax data and observed that such matters must be decided on merits at the proper adjudication stage, and not concluded mechanically on the basis of third party Income Tax data and issued with certain direction and in conclusion disposed of the writ petition with the following order, which reads as under:

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“13. Accordingly, the following:

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1 (2024) 25 Centax 382 (Kar) (03.07.2024)

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NC: 2026:KHC-D:823 WP No. 109134 of 2025

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HC-KAR

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ORDER

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In light of the 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.

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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.1 of the table relating to challenge to Orders-in-Original are disposed off.

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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 memo for withdrawal of appeal and accordingly, the orders-in-

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NC: 2026:KHC-D:823 WP No. 109134 of 2025

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HC-KAR

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original in question would also receive the same treatment, i.e. be set aside as per the directions made above.

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Wherever demands have been made pursuant to the impugned orders, such proceedings are also set aside.”

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In view of the submission made by learned counsel for the petitioner that the matter is fully covered by the decision in Karnataka Chinmaya Seva Trust’s case, and the same being fairly not disputed by the learned counsel for the respondents, this Court passes the following:

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ORDER

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i. The writ petition is disposed of in terms of Karnataka Chinmaya Seva Trust’s case.

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ii. The impugned Order-In-Original dated 28.02.2023 passed by respondent No.2 (Annexure-C) and also the Order-In-Appeal dated 27.09.2024 passed by respondent No.3 (Annexure-E) are set aside . The proceedings shall continue from the stage of show cause notice dated 24.12.2020 (Annexure-A) in

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