M/S. WISELY ONLINE SERVICES PRIVATE LIMITED vs THE DEPUTY COMMISSIONER OF CENTRAL TAX
- Court
- Karnataka High Court
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HC-KAR
NC: 2026:KHC:53851
WP No. 23382 of 2026
CNR: KAHC010511242026
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
TH
DATED THIS THE 29 DAY OF SEPTEMBER, 2026
BEFORE
THE HON'BLE MR. JUSTICE B M SHYAM PRASAD
WRIT PETITION NO. 23382 OF 2026 (T-RES)
BETWEEN:
M/S. WISELY ONLINE SERVICES
PRIVATE LIMITED
A COMPANY INCORPORATED UNDER
THE COMPANIES ACT,
HAVING ITS REGISTERED OFFICE AT
FLAT NO. 101/B,
VISHAL HOUSING APARTMENT,
MALIGAON CHARIALI,
GUWAHATI-781012
REPRESENTED BY ITS DIRECTOR,
SRI. SOUMITRA PAUL.
AT NO. FLAT NO. 101B,
VISHAL HOUSING APARTMENT,
AT ROAD, MALIGAON CHARIALI,
PANDU, KAMRUP METRO,
ASSAM-781012
…PETITIONER
Digitally
signed by
VANAMALA
N
Location:
HIGH
COURT OF
KARNATAKA
(BY SRI. JOSEPH VARGHESE, ADVOCATE)
AND:
1. THE DEPUTY COMMISSIONER
OF CENTRAL TAX
SOUTH DIVISION-4,
BENGALURU SOUTH GST
COMMISSIONERATE,
TH
7 FLOOR, ‘C’ WING,
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NC: 2026:KHC:53851
WP No. 23382 of 2026
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KENDRIYA SADAN,
KORAMANGALA,
BENGALURU - 560034.
2. THE ASSISTANT COMMISSIONER
OF CENTRAL TAX,
SOUTH DIVISION-4,
BENGALURU SOUTH GST
COMMISSIONERATE,
TH
7 FLOOR, ‘C’ WING,
KENDRIYA SADAN, KORAMANGALA,
BENGALURU - 560034.
3. THE BRANCH MANAGER,
AXIS BANK, MALIGAON CHARILI,
NEAR OVER BRIDGE,
GUWAHATI, DIST. KAMRUP METRO,
ASSAM-781011.
…RESPONDENTS
(BY SRI. JEEVAN J. NEERALGI, ADVOCATE FOR R1 - R2)
THIS WP IS FILED UNDER ARTICLE 226 OF THE
CONSTITUTION OF INDIA PRAYING TO QUASH THE
IMPUGNED ORDER-IN-ORIGINAL BEARING NO.
339/2021-SD-4 DATED 16.11.2021 PASSED BY
RESPONDENT NO. 1 (ANNEXURE A), AS BEING EX
FACIE WITHOUT JURISDICTION, ARBITRARY, ILLEGAL
AND VIOLATIVE OF ARTICLE 14 OF THE CONSTITUTION
OF INDIA; B) IN THE ALTERNATIVE TO PRAYER (A)
ABOVE, AND WITHOUT PREJUDICE THERETO, SET
ASIDE THE IMPUGNED ORDER-IN-ORIGINAL NO.
339/2021-SD-4 DATED 16.11.2021 (ANNEXURE A) AND
REMAND THE MATTER TO RESPONDENT NO. I FOR DE
NOVO ADJUDICATION, AFTER FURNISHING TO THE
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HC-KAR
NC: 2026:KHC:53851
WP No. 23382 of 2026
CNR: KAHC010511242026
PETITIONER A COPY OF THE SHOW CAUSE NOTICE
AND AFFORDING IT A REASONABLE OPPORTUNITY OF
FILING OBJECTIONS AND OF BEING HEARD;
C) QUASH THE IMPUGNED SHOW CAUSE NOTICE SL.
NO. 634/2020 DATED 23.12.2020 (F.NO. GEXCOM/
/ST/531/2020-CGST-DIV-SD-4-COMMRTE BENGALURU
(S)) ISSUED BY RESPONDENT NO. 1, AND DIRECT
RESPONDENT NO. 1 TO PRODUCE AND FURNISH A
CERTIFIED COPY OF THE SAME TO THE PETITIONER;
D) QUASH THE FORM GST DRC-13 ISSUED BY
RESPONDENT NO. 2 TO RESPONDENT NO. 3
(ANNEXURE A1) RECEIVED BY RESPONDENT NO. 3 ON
24.06.2026 AND DIRECT RESPONDENT NO. 3 TO LIFT
THE LIEN AND DE-FREEZE / OPERATIONALISE THE
PETITIONERS BANK ACCOUNT; E) DIRECTING THE
RESPONDENTS TO REFUND AND/OR RE-CREDIT TO
THE PETITIONER THE SUM OF RS. RS. 39,71,853/-
ALREADY RECOVERED FROM THE PETITIONERS BANK
ACCOUNT PURSUANT TO THE SAID FORM GST DRC-13,
TOGETHER WITH APPLICABLE INTERESTF; F) DIRECT
THE RESPONDENTS TO FORBEAR FROM TAKING ANY
FURTHER COERCIVE RECOVERY MEASURES AGAINST
THE PETITIONER PURSUANT TO THE IMPUGNED SCN,
OIO AND DRC-13, PENDING DISPOSAL OF THIS
PETITION.
THIS PETITION, COMING ON FOR ORDERS, THIS
DAY, ORDER WAS MADE THEREIN AS UNDER:
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NC: 2026:KHC:53851
WP No. 23382 of 2026
CNR: KAHC010511242026
CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD
ORAL ORDER
The petitioner has called in question the
following:
Sl.
No.
Particulars Provisions
Dated Annexure
1 Order-in-
Section 65B of Finance
16.11.2021 A
Original
Act, 1994
2 Show Cause
Section 73 of the
Central Goods and
Services Tax Act, 2017
23.12.2020
Notice
3 Garnishee
Section 79[1] of Central
24.06.2026 A1
Notice
Goods and Services
Tax Act, 2017
2. Sri. Joseph Varghese, the learned counsel
for the petitioner, and Sri. Jeevan J. Neeralgi, a
learned standing counsel for the respondents, who
accepts notice for the respondents, are heard for the
disposal of the petition with Sri. Joseph Varghese
emphasizing the following to assert bonafides about
the petitioner's non-participation in the proceedings
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after receipt of the Show Cause Notice dated
23.12.2020.
[A] The petitioner is into the export of
services, and the consideration for such
services is received in foreign currency
outside India. The consideration received
within India’s territory is below the
threshold limit. The petitioner, therefore,
has not registered itself as a Taxable
Person under the Finance Act, 1994.
[B] The petitioner has relocated its office from
Bengaluru to Guwahati, Orissa in the
year 2019 and it is possible that the Show
Cause Notice and also notices of personal
hearing are sent to the petitioner's old
address.
[C] As such the petitioner could not respond
and bring forth the circumstances to
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WP No. 23382 of 2026
CNR: KAHC010511242026
show cause against the confirmation of
the propositions in the Show Cause
Notice.
[D] The Show Cause Notice is issued only
based on the information furnished under
a Memorandum of Understanding from
the Central Board of Direct Taxes [CBDT]
based on the income returned for tax.
[E] In similar circumstances principally a Co-
ordinate Bench of this Court in M/s.
Karnataka Chinmaya Seva Trust Vs.
Joint Commissioner of Central Tax in
W.P. No.11154/2023 and connected
matters vide the dated 03.07.2024 has
restored the proceedings for due
consideration.
3. Sri. Joseph Varghese argues that the
petitioner, once the Garnishee Notice as per
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WP No. 23382 of 2026
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[ Annexure-A1 ] is served on its Bankers, has written to
the respondent for a copy of the Show Cause
Notice/Order-in-original while requesting for the
details of the Show Cause Notice and the other
notices sent along with the proof of service but the
petitioner is served with only a copy the impugned
Order-in-Original.
4. The question that this Court considers for
the disposal of the petition in the light of these
circumstances canvassed is:
Whether the petitioner must have another
opportunity to justify its cause against
confirmation of the proposition in the Show
Cause Notice which inarguably is based on
the information furnished by the CBDT .
It is possible that the petitioner can demonstrate that
its services are exempt from service tax, and the
petitioner will have to bring on record all facts which
must be considered. It is also possible that the
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NC: 2026:KHC:53851
WP No. 23382 of 2026
CNR: KAHC010511242026
petitioner can show sufficient cause for its non-
participation with the change in address being
indisputable. In the circumstances, this Court opines
that the petitioner must have another opportunity.
Hence, the following:
ORDER
[A] The petition is allowed in-part.
[B] The following impugned Orders are
quashed.
Particulars Provisions
Dated Annexure
Order-in-
Section 65B of
Finance Act, 1994
16.11.2021 A
Original
Garnishee
Section 79[1] of
24.06.2026 A1
Notice
Central Goods
and Services Tax
Act, 2017
[C] The petitioner without further notice
shall file Response to the Show Cause
Notice with the first respondent by
06.11.2026 .
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WP No. 23382 of 2026
CNR: KAHC010511242026
[D] It is needless to observe that the first
respondent shall ensure that the
petitioner, on the date of first
appearance, is furnished with a copy of
the Show Cause Notice and is extended
with reasonable opportunity thereafter
to file a response.
[E] Further, it is needless to observe that
all questions are left open for
consideration.
Sd/-
(B M SHYAM PRASAD)
JUDGE
AN/-
List No.: 2 Sl No.: 3