S Nagaraju 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 does not constitute a 'supply of goods or services' under the GST Act. Therefore, the deduction of GST from the compensation was illegal and quashed. The respondent was directed to refund the deducted GST with 15% interest and pay Rs. 50,000/- in costs.
Facts
The petitioner's land and structures were acquired by the Union of India for a highway project, and an award of Rs. 63,97,500.00 was determined as compensation. However, the respondent deducted Rs. 9,35,640.61 (18% GST) from this compensation, which the petitioner challenged.
Key Issues
Whether the acquisition of land and structures by the State under its power of eminent domain constitutes a 'supply of goods or services' liable for Goods and Services Tax (GST) under the Central Goods and Service Tax Act, 2017.
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: KAHC010534132026 NC: 2026:KHC:44559 WP No. 24322 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. 24322 OF 2026 (LA-RES) BETWEEN:
S NAGARAJU S/O LATE SINGARAIAH AGED ABOUT 78 YEARS, R/O NO 10/27, ANCHEKERI STREET SRIRANGAPATNA, MANDYA DISTRICT 571438 …PETITIONER (BY SRI. NARENDRA GOWDA, ADVOCATE) AND:
THE DEPUTY COMMISSIONER MANDYA-571438, MANDYA DISTRICT,
THE SPECIAL LAND ACQUISITION OFFICER AND COMPETENT 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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