H. C. Krishnappa vs. The Deputy Commissioner
Held
The High Court held that immovable property, including buildings, cannot be construed as goods or services. Therefore, the acquisition of property by the State through eminent domain does not fall within the definition of 'supply of goods or service' under the GST Act. The deduction of GST was deemed an arbitrary and excessive exercise of power.
Facts
Petitioners' land and structures were acquired for a national highway, and the acquiring authority deducted 18% GST (Rs. 6,45,235.32) from the compensation amount of Rs. 54,12,091.16. The petitioners challenged this deduction, arguing that land acquisition is not a supply of goods or services under the GST Act.
Key Issues
Whether GST is leviable on compensation paid for the compulsory acquisition of land and structures by the State, and whether such acquisition constitutes a '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, Section 3 of the Transfer of Property Act, 1882
AI-generated summary — verify with the full judgment below
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HC-KAR
CNR: KAHC010601512026 NC: 2026:KHC:47189 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. 27189 OF 2026 (LA-RES) BETWEEN:
H. C. KRISHNAPPA S/O LATE CHALUVAIAH AGED ABOUT 74 YEARS, BASAVANAHALLI VILLAGE KUSHAL NAGAR TALUK KODAGU DISTRICT 571234
K.MAHINDRA S/O H.C.KRISHNAPPA AGED ABOUT 44 YEARS, BASAVANAHALLI VILLAGE KUSHAL NAGAR TALUK KODAGU DISTRICT 571234 …PETITIONERS (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 HEMALATHA J Location: HIGH COURT OF KARNATAKA HC-KAR
CNR: KAHC010601512026 NC: 2026:KHC:47189
NATIONAL HIGHWAY AUTHORITY OF INDIA MINISTRY OF ROAD TRANSPORT AND HIGHWAYS GOVT OF
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