N Shekar vs. The Deputy Commissioner
Held
The High Court held that compulsory acquisition of immovable property by the State does not constitute a 'supply of goods or services' under the GST Act. Therefore, the deduction of GST from the compensation amount was arbitrary and an excess of power.
Facts
Petitioners' land and structures were compulsorily acquired for a highway project. The acquiring authority deducted 18% GST (Rs. 4,89,954.80) from the compensation amount, which the petitioners challenged as illegal.
Key Issues
Whether Goods and Services Tax is leviable on the compensation paid for compulsory acquisition of land and structures by the State. Whether such acquisition can be construed as a 'supply of goods or services'.
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: KAHC010534052026 NC: 2026:KHC:44558 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. 24271 OF 2026 (LA-RES) BETWEEN:
N SHEKAR S/O NANJUNDE GOWDA, AGED ABOUT 53 YEARS, R/O VADDARAHALLI, HALEBEEDU POST BILIKERE HOBLI, HUNSUR TALUK, MYSORE DISTRICT - 571103
N.SHIVANNA S/O NANJUNDE GOWDA, AGED ABOUT 55 YEARS, R/O VADDARAHALLI. HALEBEEDU POST BILIKERE HOBLI, HUNSUR TALUK, MYSORE DISTRICT - 571103
PRAKASH S/O LATE NINGE GOWDA, AGED ABOUT 44 YEARS, R/O VADDARAHALLI, HALEBEEDU POST BILIKERE HOBLI, HUNSUR TALUK, MYSORE DISTRICT - 571103
MANJUNATH S/O LATE NINGE GOWDA, AGED ABOUT 43 YEARS, R/O VADDARAHALLI, HALEBEEDU POST BILIKERE HOBLI, HUNSUR TALUK, MYSORE DISTRICT - 571103 …PETITIONERS (BY SRI. NARENDRA GOWDA, ADVOCATE) HEMALATHA J Location: HIGH COURT OF KARNATAKA HC-KAR
CNR: KAHC010534052026 NC: 2026:KHC:44558 AND:
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