Sannappa 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 services under the GST Act. Therefore, the deduction of GST from the compensation was illegal, and the Court directed the refund of the deducted amount with 15% interest, also imposing costs on the respondent.
Facts
The petitioner's land and structures were acquired by the Union of India for a national highway project, and compensation was determined. However, the acquiring authority deducted 18% Goods and Services Tax (GST) from the compensation amount, which the petitioner challenged.
Key Issues
The key legal issue was whether GST is leviable on compensation paid for the compulsory acquisition of immovable property (land and structures) by the State.
Sections Cited
Article 366(12A)
AI-generated summary — verify with the full judgment below
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HC-KAR
CNR: KAHC010534552026 NC: 2026:KHC:42789 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF AUGUST, 2026 BEFORE THE HON'BLE MR. JUSTICE R. NATARAJ WRIT PETITION NO. 24263 OF 2026 (LA-RES) BETWEEN:
SANNAPPA S/O LATE MAHADEVAPPA, AGED ABOUT 50 YEARS, R/O DADADAKALLAHALLI, ELAVALA HOBLI MYSORE TALUK, MYSORE DISTRICT - 571130
…PETITIONER (BY SRI. NARENDRA GOWDA, ADVOCATE) AND:
THE DEPUTY COMMISSIONER, MYSORE DISTRICT, MYSORE -571401
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 HEMALATHA J Location: HIGH COURT OF KARNATAKA HC-KAR
CNR: KAHC010534552026 NC: 2026:KHC:42789 GOVT OF INDIA, REGIONAL OFFICE BESIDE NAGASANDRA METRO STATION BANGALORE 560073 REP BY ITS DEPUTY GENERAL MANAGER
The judgment continues below.
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