Thamme Gowda vs. The Deputy Commisisoner
Held
The Court held that the acquisition of immovable property by the State, in exercise of its power of eminent domain, cannot be construed as a 'supply of goods or service' under the GST Act. Therefore, the deduction of GST from the compensation payable to the petitioner was in excess of power. The Court directed the refund of the deducted GST with interest and imposed costs on the respondent.
Facts
The petitioner's land and structures were acquired by the Union of India for a highway project, and an award of compensation was passed. The respondent authorities deducted 18% GST (Rs. 2,20,196.10) from the compensation amount. The petitioner challenged this deduction, arguing that land acquisition does not constitute a supply of goods or services under the GST Act.
Key Issues
Whether the compulsory acquisition of land and structures by the State constitutes 'supply of goods or services' under the GST Act, thereby attracting GST liability on the compensation paid to the landowner.
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: KAHC010534252026 NC: 2026:KHC:42788 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. 24257 OF 2026 (LA-RES) BETWEEN:
THAMME GOWDA S/O. LATE KARI GOWDA, AGED ABOUT 58 YEARS, R/AT MANCHADEVANAHALLI VILLAGE, BYLAKUPPE POST, PERIYAPATNA TALUK, MYSORE DISTRICT.
…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 HEMALATHA J Location: HIGH COURT OF KARNATAKA HC-KAR
CNR: KAHC010534252026 NC: 2026:KHC:42788 TRANSPORT AND HIGHWAYS GOVT OF INDIA, REGIONAL OFFICE BESIDE NAGASANDRA METRO STATION BANGALORE 560073 REP BY ITS DEPUTY
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