Boby Mathew vs. The Deputy Commissioner
Held
The High Court held that compulsory acquisition of immovable property is not a 'supply of goods or services' under the GST Act. Therefore, GST cannot be levied or deducted from the compensation paid for such acquisition, and the deduction was quashed.
Facts
The petitioner's land and structures were compulsorily acquired for a highway project. The acquiring authority deducted 18% GST from the compensation amount, which the petitioner challenged as unlawful.
Key Issues
The key legal issue was whether Goods and Services Tax (GST) is applicable to compensation paid for compulsory acquisition of land and structures by the State.
Sections Cited
Central Goods and Service Tax Act, 2017, Article 366(12A) of the Constitution of India
AI-generated summary — verify with the full judgment below
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HC-KAR
CNR: KAHC010601502026 NC: 2026:KHC:47192 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 29TH DAY OF AUGUST, 2026 BEFORE THE HON'BLE MR. JUSTICE R. NATARAJ WRIT PETITION NO. 27108 OF 2026 (LA-RES) BETWEEN:
BOBY MATHEW W/O HARISH M.P AGED ABOUT 52 YEARS, BASAVANAHALLI VILLAGE KUSHAL NAGAR TALUK KODAGU DISTRICT 571234 …PETITIONER (BY SRI. NARENDRA GOWDA.,ADVOCATE) AND:
THE DEPUTY COMMISSIONER KODAGU DISTRICT, KODAGU-571201
THE SPECIAL LAND ACQUISITION OFFICER AND COMPETANT AUTHORITY, NATIONAL HIGHWAY 275 (MYSORE - MADIKERE DIVISION), NO 984, 1ST FLOOR, GEETHA ROAD CHAMARAJPURAM, MYSORE 570005
NATIONAL HIGHWAY AUTHORITY OF INDIA MINISTRY OF ROAD TRANSPORT AND HIGHWAYS GOVT OF INDIA, REGIONAL OFFICE BESIDE HEMALATHA J Location: HIGH COURT OF KARNATAKA HC-KAR
CNR: KAHC010601502026 NC: 2026:KHC:47192 NAGASANDRA METRO STATION BANGALORE 560073 REP BY ITS DEPUTY GENERAL MANAGER
PROJECT DIRECTOR N
The judgment continues below.
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