M Basappa Reddy vs. State Of Karnataka
Held
The Court held that the solatium component of compensation received for land acquisition is not exigible to GST. Consequently, the show cause notice and the adjudication order demanding GST on solatium were quashed.
Facts
The petitioner received compensation for acquired land, including a solatium component. The Assistant Commissioner issued a show cause notice and an order demanding GST on this solatium, without considering the petitioner's response.
Key Issues
Whether solatium received as compensation for land acquisition is subject to GST.
Sections Cited
Section 73, Section 20
AI-generated summary — verify with the full judgment below
- 1 -
HC-KAR NC: 2025:KHC:54380 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. 4569 OF 2025 (T-RES) BETWEEN: M BASAPPA REDDY LEGAL HEIR OF LATE R. SHAKUNTALA S/O LATE MUNIYAPPA, AGED ABOUT 78 YEARS. RESIDING AT: 15, GURAPPA AVENUE, PRIMROSE ROAD, BANGALORE - 560025. …PETITIONER (BY SRI. M.T.NANAIAH, SENIOR COUNSEL FOR SRI.ARVIND B.REDDY,ADVOCATE) AND:
STATE OF KARNATAKA REPRESENTED BY ITS PRINCIPAL SECRETARY DEPARTMENT OF FINANCE, VIDHANA SOUDHA, BANGALORE - 560001. 2. COMMISSIONER OF COMMERCIAL TAX KALIDASA MARG, GANDHINAGAR, VANIJYA THERIGE, KARYALAYA, BANGALORE - 560009. SREEDHARAN BANGALORE SUSHMA LAKSHMI Location: High Court of Karnataka HC-KAR NC: 2025:KHC:54380
ASSISTANT COMMISSIONER OF COMMERCIAL TAX (AUDIT)4.8 DGSTO-4, CABIN NO. 9, 5TH FLOOR, BMTC BUILDING, 80 FEET ROAD, KORAMANGALA 6TH BLOCK, BANGALORE - 560095 …RESPONDENTS (BY SRI.K.HEMA KUMAR, AGA)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITU
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.