Prakash vs. The Deputy Commissioner
Held
The High Court held that immovable property, including structures, cannot be considered 'goods' or 'services' under the Central Goods and Service Tax Act, 2017. It ruled that the State's acquisition of property by eminent domain is an expropriation, not a 'supply of goods or service', and therefore GST is not applicable. The deduction was quashed, and the respondents were directed to refund the deducted amount with interest and costs.
Facts
The petitioner's land and structure were compulsorily acquired for a highway widening project, and the Special Land Acquisition Officer deducted 18% GST (Rs. 2,50,599.40) from the compensation awarded. The petitioner challenged this deduction, contending that land acquisition does not constitute a 'sale of goods or providing of service' under the GST Act.
Key Issues
Whether Goods and Services Tax (GST) is leviable on compensation paid for the compulsory acquisition of land and structures by the State, 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
- 1 -
HC-KAR
CNR: KAHC010534582026 NC: 2026:KHC:43489 WP No. 24128 of 2026
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 14TH DAY OF AUGUST, 2026 BEFORE THE HON'BLE MR. JUSTICE R. NATARAJ WRIT PETITION NO. 24128 OF 2026 (LA-RES)
BETWEEN:
PRAKASH S/O. VEERABHADRASHETTY, AGED ABOUT 51 YEARS, R/O BOREHOSAHALLI, RAVANDOOR HOBLI, PERIYAPATNA TALUK, MYSORE DISTRICT-571 107. …PETITIONER (BY SRI. NARENDRA GOWDA, ADVOCATE) AND:
THE DEPUTY COMMISSIONER MYSORE DISTRICT, MYSORE -571 401. 2. THE SPECIAL LAND ACQUISITION OFFICER AND COMPETANT AUTHORITY, NATIONAL HIGHWAY 275 (MYSORE - MADIKERE DIVISION), NO.984, 1ST FLOOR, GEETHA ROAD CHAMARAJPURAM, MYSORE-570005. 3. NATIONAL HIGHWAY AUTHORITY OF INDIA MINISTRY OF ROAD TRANSPORT AND HIGHWAYS GOVERNMENT OF INDIA, REGIONAL OFFICE BESIDE NAGASANDRA METRO STATION BANGALORE-560073 REPRESENTED BY ITS DEPUTY GENERAL MANAGER. HEMALATHA J Location: HIGH COURT OF KARNATAKA HC-KAR
CNR: KAHC010534582026 NC: 2026:KHC:43489 WP No. 24128 of
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
Reproduced from the public record of the Karnataka High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.