Sri Pokala Malleshwara Reddy Vs the Commissioner… — Writ and Judicial Review | Karnataka HC (2026)

Sri Pokala Malleshwara Reddy Vs the Commissioner… — Writ and Judicial Review | Karnataka HC (2026)

What the court decided

AI extract

Outcome

Petition disposed of: the adjudication order at Annexure-A and the recovery notice at Annexure-L were set aside as without jurisdiction; the authorities were directed to recall Annexure-L forthwith; the Tirupathi Commissionerate remains at liberty to proceed pursuant to the notice at Annexure-H; all contentions of both sides kept open.

Issue for consideration

Whether the adjudication order at Annexure-A and the recovery notice at Annexure-L issued by the Bengaluru North-West Commissionerate, demanding service tax for FY 2015-16 and 2016-17, were without jurisdiction, given that the petitioner asserted his residence and business fall within the jurisdiction of the Tirupathi Commissionerate.

Court's answer

The adjudication order (Order-in-Original dated 28.09.2022) at Annexure-A and the recovery notice at Annexure-L were set aside as having been issued without jurisdiction.

Ratio / Principle

In consequence of the setting aside of the order at Annexure-A, the authorities are directed to recall the recovery notice at Annexure-L forthwith.

Key takeaways

While setting aside the impugned order and notice, the court observed that the authorities of the Tirupathi Commissionerate remain at liberty to proceed with the proceedings pursuant to the notice at Annexure-H.ratio¶39
All contentions of both sides were kept open at the time of disposal of the petition.obiter¶41

Detailed headnote1 paragraphs

High Court of Karnataka (S Sunil Dutt Yadav, J.), Oral Order dated 18 March 2026 in WP No. 11352 of 2025 (T-RES): Sri Pokala Malleshwara Reddy, invoking Article 226, challenged the adjudication Order-in-Original dated 28.09.2022 (Annexure-A) passed by the Office of the Additional Commissioner of Central Tax, Bengaluru North West, which held him liable to Rs.10,19,69,826/- as the taxable value of services for FY 2015-16 and 2016-17 under Sections 67 and 67A of the Finance Act, 1994, together with the recovery notice at Annexure-L. The petitioner asserted his residence/business falls within the Tirupathi Commissionerate's jurisdiction; the Superintendent, Central Tax, Proddatur-II CGST Range had separately noticed non-payment of service tax for the same period. Counsel for Respondent Nos. 1 to 3, upon instructions, conceded that the jurisdictional assertion required acceptance. The court set aside Annexure-A and Annexure-L as without jurisdiction, directed recall of Annexure-L forthwith, observed that the Tirupathi Commissionerate remains at liberty to proceed pursuant to notice at Annexure-H, and kept all contentions of both sides open.

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NC: 2026:KHC:15827 WP No. 11352 of 2025

HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 18^TH DAY OF MARCH, 2026

BEFORE

THE HON'BLE MR. JUSTICE S SUNIL DUTT YADAV

WRIT PETITION NO. 11352 OF 2025 (T-RES)

BETWEEN:

SRI POKALA MALLESHWARA REDDY, S/O. P. NARAYANA REDDY, AGED ABOUT 45 YEARS, 1/28, KONASAMUDRAM VILLAGE, BADVEL, YSR DISTRICT - 516 227 ANDRAPRADESH.

…PETITIONER

(BY SRI. CHANDRASHEKARA K, ADVOCATE)

AND:

Digitally signed by VIJAYA P Location: HIGH COURT OF KARNATAKA

THE COMMISSIONER OF CENTRAL TAX, BENGALURU NORTH-WEST COMMISSIONERATE, 2ND FLOOR, SOUTH WING, BMTC BUS STAND COMPLEX, SHIVAJINAGAR, BENGALURU - 560 051.

THE ADDITIONAL COMMISSIONER OF CENTRAL TAX, BENGALURU NORTH-WEST COMMISSIONERATE, 2ND FLOOR, SOUTH WING, BMTC BUS STAND COMPLEX, SHIVAJINAGAR, BENGALURU - 560 051.

THE ASSISTANT COMMISSIONER OF CENTRAL TAX, NORTH-WEST DIVISION-5, 67/2 SGR COMPLEX, SADASHIVANAGAR, TUMKUR - 572 105.

…RESPONDENTS

(BY SRI. SHISHIRA AMARNATH, ADVOCATE)

2 - NC: 2026:KHC:15827 WP No. 11352 of 2025

HC-KAR

THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO A) QUASH AND SETTING ASIDE THE ORDER DATED 46/ADC/BNW/2022/BNW DATED 29/09/2022 (ANNEXUREA) ISSUED BY RESPONDENT NO.2 DEMANDING SERVICE TAX WITHOUT JURISDICTION AND ETC.

THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE S SUNIL DUTT YADAV

ORAL ORDER

The petitioner has called in question the recovery notice at Annexure-L and has also sought for setting aside of the order of adjudication passed by the Bengaluru North West Commissionerate dated 28.09.2022. The Order-in-

Original dated 28.09.2022 is the order passed by the Office of the Additional Commissioner of Central Tax, Bengaluru North West. In terms of the said order, the authorities have held the petitioner is liable to the tune of

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NC: 2026:KHC:15827 WP No. 11352 of 2025

HC-KAR

Rs.10,19,69,826/- being the taxable value of services rendered for the Financial Year 2015-16 and 2016-17 in terms of Sections 67 and 67A of the Finance Act, 1994.

The petitioner would submit that as regards the

same period of 2015-16 and 2016-17, the Office of the Superintendent of Central Tax, Proddatur-II CGST Range had issued a notice regarding non-payment of service tax for the Financial Year 2015-16 and 2016-17, calling upon the petitioner to furnish certain documents. It is assertion of the petitioner that he is a resident insofar as business and otherwise and falls within the jurisdiction of the Tirupathi Commissionerate and accordingly, the order at Annexure-A as well as the recovery notice at Annexure-L issued by the North West Commissionerate, Bengaluru are without jurisdiction.

Learned counsel appearing for respondent Nos.1 to 3, upon instructions submits that the said assertion requires acceptance. In light of the same, the

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NC: 2026:KHC:15827 WP No. 11352 of 2025

HC-KAR

order at Annexure-A and the notice at Annexure-L are set

aside, while observing that the authorities of the Tirupathi Commissionerate are at liberty to proceed with the proceedings pursuant to the notice at Annexure-H.

In view of the setting aside of the order at Annexure-A, the authorities are directed to recall Annexure-L forthwith.

Accordingly, the petition is disposed of . All contentions of both sides are kept open.

Sd/(S SUNIL DUTT YADAV) JUDGE

SHS List No.: 1 Sl No.: 2