Nizamudheen vs. The Deputy Commissioner
Held
The Court held that immovable property, including land and structures, cannot be considered 'goods' or 'services' under the GST Act. It ruled that the State's acquisition of property through eminent domain is an expropriation, not a supply, and therefore, GST cannot be levied on the compensation. The deduction of GST was quashed, and a refund with interest and costs was ordered.
Facts
The petitioner's land and structure were compulsorily acquired for a National Highway project. The acquiring authority deducted 18% GST (Rs. 29,34,252/-) from the compensation awarded to the petitioner. The petitioner challenged this deduction, contending that land acquisition does not fall under the purview of 'supply of goods or services' liable for GST.
Key Issues
Whether GST can be levied on compensation paid for compulsory acquisition of land and structures by the State. Whether such an acquisition constitutes a 'supply of goods or services' under the Central Goods and Service Tax Act, 2017.
Sections Cited
Central Goods and Service Tax Act, 2017, Article 366(12A)
AI-generated summary — verify with the full judgment below
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HC-KAR
CNR: KAHC010554182026 NC: 2026:KHC:43253 WP No. 25227 of 2026
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 13TH DAY OF AUGUST, 2026 BEFORE THE HON'BLE MR. JUSTICE R. NATARAJ WRIT PETITION NO. 25227 OF 2026 (LA-RES) BETWEEN:
NIZAMUDHEEN S/O HAJI MONU AGED ABOUT 42 YEARS, R/O 1ST BLOCK, YOGANANDA BADAVANE BYCHANAHALLI, KUSHAL NAGAR KODAGU DISTRICT - 571234 …PETITIONER (BY SRI. NARENDRA GOWDA, ADVOCATE) AND:
THE DEPUTY COMMISSIONER KODAGU DISTRICT, KODAGU-571234
THE SPECIAL LAND ACQUISITION OFFICER AND COMPETANT AUTHORITY, NATIONAL HIGHWAY-275 (MYSORE-MADIKERI 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 HEMALATHA J Location: HIGH COURT OF KARNATAKA HC-KAR
CNR: KAHC0105541820
The judgment continues below.
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