B Padmanabha vs. The Deputy Commissioner
Held
The High Court held that compulsory acquisition of immovable property is an expropriation by the State, not a 'supply of goods or services' under the GST Act. Therefore, GST cannot be levied on the compensation paid for such acquisition, including for structures, as they are part of immovable property.
Facts
The petitioner's land and structures were compulsorily acquired for a highway project, and an award of Rs. 72,20,657.24 was determined as compensation. The acquiring authority deducted Rs. 10,64,810.14 as 18% GST from this compensation, which the petitioner challenged.
Key Issues
Whether Goods and Services Tax (GST) is leviable on the compensation amount paid for the 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: KAHC010534402026 NC: 2026:KHC:44557 WP No. 24267 of 2026
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 18TH DAY OF AUGUST, 2026 BEFORE THE HON'BLE MR. JUSTICE R. NATARAJ WRIT PETITION NO. 24267 OF 2026 (LA-RES) BETWEEN:
B PADMANABHA S/O G.A.BELLIAPPA, AGED ABOUT 58 YEARS, R/O BASAVANAHALLI AND POST, KUSHAL NAGAR TALUK, COORG DISTRICT - 571234 …PETITIONER (BY SRI. NARENDRA GOWDA, ADVOCATE) AND:
THE DEPUTY COMMISSIONER COORG DISTRICT, COORG -571234
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 NAGASANDRA METRO STATION BANGALORE 560073 REP BY ITS DEPUTY GENERAL MANAGER
PROJECT DIRECTOR NATIONAL HIGHWAY AUTHORITY OF INDIA PROJECT IMPLEMENTATION UNIT BASAVANAPURA (RAMADEVARAPADA) HEMALATHA J Location: HIGH COURT OF KARNATAKA
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