M/S South INDIA Steel Industries LTD. vs. Additional Commissioner Of Commercial Taxes (Enforcement), South Zone
Held
The High Court held that the solatium component received by the petitioner is not exigible to GST. Consequently, the impugned show cause notice and all consequential proceedings were quashed.
Facts
The petitioner received compensation for acquired land, including a solatium component. The tax authorities issued a show cause notice demanding GST on this solatium. The petitioner challenged this notice and subsequent orders.
Key Issues
Whether the solatium component of compensation received for land acquisition is liable to GST.
Sections Cited
CGST Act, 2017, KGST Act, 2017
AI-generated summary — verify with the full judgment below
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HC-KAR NC: 2025:KHC:54233 WP No. 8037 of 2024
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 18TH DAY OF DECEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 8037 OF 2024 (T-RES) BETWEEN:
M/S SOUTH INDIA STEEL INDUSTRIES LTD., A COMPANY INCORPORATED UNDER THE COMPANIES ACT, HAVING ITS OFFICE AT SURVEY NO. 81, WHITEFIELD ROAD, NEXT TO ITPL, BANGALORE URBAN - 560 066. REP. BY ITS DIRECTOR SRI SANJAY GARG. …PETITIONER (BY SRI SYED KHAMRUDDIN, ADVOCATE)
AND:
ADDITIONAL COMMISSIONER OF COMMERCIAL TAXES (ENFORCEMENT), SOUTH ZONE, ROOM NO. 401, 4TH FLOOR, VTK - 2 BUILDING, RAJENDRANAGARA, KORAMANGALA, BANGALORE - 560 047. 2. DEPUTY COMMISSIONER OF COMMERCIAL TAXES (ENFORCEMENT -8) SOUTH ZONE, VTK-2, RAJENDRA NAGAR, KORAMANGALA, BANGALORE - 560 047. …RESPONDENTS (BY SRI K HEMA KUMAR, AGA)
THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, 1950 PRAYING TO QUASH THE SHOW CAUSE NOTICE DATED 26.09.23 BEARING NO. ADCOM/ENF/SZ/DCCT/ENF-08/GST/ADJ - 01/23-24 ISSUED BY THE R1 (ANNEXURE-A) ETC.
THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN B GROUP, THIS DAY,
The judgment continues below.
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