B M Nanjappa vs. The Deputy Commissioner
Held
The Court held that the acquisition of immovable property by the State through eminent domain is neither a supply of goods nor a provision of service under the GST Act. Therefore, GST is not applicable to such compensation. The deduction of GST was quashed, and the respondent No.2 was directed to refund the deducted amount with 15% interest and pay costs of Rs. 50,000/-.
Facts
The petitioner's land was acquired by the Union of India for a highway project, and an award of Rs. 53,73,181.32 was determined as compensation. The respondent No.2 deducted Rs. 8,18,526.50 (18% GST) from this compensation. The petitioner challenged this deduction, contending that land acquisition does not constitute a sale of goods or provision of service under the GST Act.
Key Issues
Whether Goods and Services Tax (GST) can be levied and deducted from compensation paid for land and structures acquired by the State under its power of eminent domain, 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
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HC-KAR
CNR: KAHC010534442026 NC: 2026:KHC:44556 WP No. 24228 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. 24228 OF 2026 (LA-RES) BETWEEN:
B M NANJAPPA S/O LATE MALLAPPA, AGED ABOUT 60 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 DEPARTMENT OF NATIONAL HIGHWAYS OF INDIA
PROJECT DIRECTOR HEMALATHA J Location: HIGH COURT OF KARNATAKA HC-KAR
CNR: KAHC010534442026
The judgment continues below.
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