Smt. Shivamma vs. The Deputy Commissioner
Held
The High Court held that the acquisition of immovable property by the State, even with structures, is an expropriation of property and cannot be construed as a 'supply of goods or services' under the GST Act. Therefore, the deduction of GST from the compensation amount was deemed illegal and quashed, with directions for refund, interest, and costs.
Facts
The petitioner's land and structures were acquired for a National Highway, and the acquiring authority deducted 18% Goods and Services Tax (GST) from the compensation amount. The petitioner challenged this deduction, contending that land acquisition does not constitute a supply of goods or services under the GST Act.
Key Issues
Whether GST is applicable to compensation paid for compulsory acquisition of land and structures by the State, and if such acquisition falls within the definition of 'supply of goods or services' under the GST Act.
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
- 1 -
HC-KAR
CNR: KAHC010601522026 NC: 2026:KHC:47191 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. 27192 OF 2026 (LA-RES) BETWEEN:
SMT. SHIVAMMA W/O LATE SEETHARAM AGED ABOUT 66 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: KAHC010601522026 NC: 2026:KHC:47191 NAGASANDRA METRO STATION BANGALORE 560073 REP BY ITS DEPUTY GENERAL MANAGER
PROJECT DIRECT
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
Reproduced from the public record of the Karnataka High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.