BharatTaxGST

M/S Lakshmi Conventional Hall vs. The Deputy Commissioner Of Commercial

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WP/3898/2025HC KarnatakaGSTCNR KAHC01008911202503 December 2025Bench: S.R.KRISHNA KUMAR5 pages
For Petitioner: SRI. VENKATESH G., ADVOCATEFor Respondent: SMT. JYOTI M. MARADI, HCGP

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Cause title — parties, addresses and appearances
- 1 - HC-KAR NC: 2025:KHC:50761 WP No. 3898 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 3RD DAY OF DECEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.3898 OF 2025 (T-RES) BETWEEN: M/S LAKSHMI CONVENTIONAL HALL REPRESENTED BY ITS PROPRIETOR SRI SUBBAREDDY S N SON OF SRI NANJAREDDY, AGED ABOUT 77 YEARS, NO.55, BEHIND HP PETROL BUNK, GROUND FLOOR, SARJAPUR MAIN ROAD, SOMPURA GATE, SARJAPUR HOBLI, ANEKAL TALUK, BENGALURU – 562 125. REGISTERED UNDER CGST / KGST ACT, 2017 AND ALLOTTED GSTIN 29BUHPN2099G1Z6 …PETITIONER (BY SRI. VENKATESH G., ADVOCATE) AND: 1. THE DEPUTY COMMISSIONER OF COMMERCIAL TAXES (AUDIT-4.3), 6TH FLOOR, ROOM NO.603, BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, KORAMANGALA, D.V.O-04, BENGALURU – 560 095. 2. THE ASSISTANT COMMISSIONER OF CENTRAL TAXES, (ENFORCEMENT)-08, SOUTH ZONE, VTK-II, A-BLOCK, NO.604, 6TH FLOOR, KORAMANGALA, 80 FT RD, RAJENDRANAGAR, BANGALORE – 560 047. …RESPONDENTS (BY SMT. JYOTI M. MARADI, HCGP) Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:50761 WP No. 3898 of 2025 THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER OF ADJUDICATION DATED 26.07.2024 FOR THE PERIOD APRIL 2019 TO MARCH 2020 PASSED BY THE R-1 BEARING NO.DCCT(AUDIT) 4.3/GST- ADJ/2024-25 HEREIN MARKED AS ANNX-A1 AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER

In this petition, petitioner seeks the following reliefs: “i) Issue a writ of certiorari and direction in the nature of a writ of certiorari quashing the Order of Adjudication dated 26.07.2024 for the period April 2019 to March 2020 passed by the Respondent No.1 bearing No.DCCT (Audit)4.3/GST-adj/2024-25 herein marked as Annexure-A1. ii) Issue a writ of certiorari and direction in the nature of a writ of certiorari quashing the Summary of the order in Form GST DRC-07 dated 26.07.2024 for the period April 2019 to March issued by the Respondent No.1 bearing Reference No.ZD290724090573Y herein marked as Annexure-A2. iii) Issue a writ of certiorari and direction in the nature of a writ of certiorari quashing the Show cause notice in Form GST DRC-01 dated 29.01.2024 for the period April 2019 to March 2020 issued by the Respondent No.2 bearing Case ID No.ACCT(ENF)-08/INS-239/2023-24 herein marked as Annexure-B. HC-KAR NC: 2025:KHC:50761 iv) And pass such other orders as this Hon'ble Court deems fit and proper including awarding of cost of this writ petition in the interest of justice and equity.”

2.

Heard learned counsel for the petitioner, learned HCGP for the respondents and perused the material on record.

3.

A perusal of the material on record will indicate that pursuant to the lands of the petitioner being acquired by the State / KIADB under the provisions of the KIAD Act, the petitioner received compensation under Section 29(2) of the KIAD Act in terms of Agreements, documents etc., executed between the petitioner and KIADB. Subsequently, the respondent issued the impugned show cause notice at Annexure-B dated 29.01.2024, calling upon the petitioner to pay GST on the solatium component in the compensation received by the petitioner, who is before this Court by way of the present petition.

4.

The issue involved in the present petition as to whether solatium received by the petitioner is exigible / amenable to GST is HC-KAR NC: 2025:KHC:50761 W.P.No.2552/2024 and connected matters, wherein it is held as under:- "

11.

In the result, I pass the following:- ORDER (i) W.P.No.2552/2024, W.P.No.17524/2024, W.P.No.10838/2024, and W.P.No.5858/2024 are hereby allowed. (ii) It is hereby declared that the compensation paid in favour of the petitioners towards acquisition of their lands by the State/KIADB under the head ‘Solatium’ is not exigible/ amenable to levy of GST under the provisions of CGST/KGST Act, 2017. (iii) The impugned Notices at Annexures-A and A1 both dated 30.10.2023 issued in W.P.No.2552/2024 and all consequential proceedings are hereby quashed. (iv) The impugned Orders at Annexures-A and A1 both dated 20.03.2024 and impugned Notices at Annexures-B and B1 both dated 09.10.2023 issued in W.P.No.17524/2024 and all consequential proceedings are hereby quashed. (v) The impugned Order at Annexure-A dated 30.12.2023 and Notice at Annexure-C dated 26.09.2023 issued in W.P.No.10838/2024 and all consequential proceedings are hereby quashed. (vi) The impugned Order at Annexure-A dated 04.12.2023 and Notice at Annexure-F dated 26.09.2023 issued in and all consequential proceedings are hereby quashed. (vii) The impugned Order at Annexure-A dated 20.12.2023 and show cause Notice at Annexure-F dated 26.09.2023 issued in W.P.No.5858/2024 and all consequential proceedings are hereby quashed." HC-KAR NC: 2025:KHC:50761

5.

In view of the aforesaid facts and circumstances and the order of this Court referred to supra, I am of the view that the present petition deserves to be allowed and the impugned show cause notice at Annexure-B dated 29.01.2024 and all consequential proceedings deserve to be quashed.

6.

In the result, I pass the following:- ORDER

(i) The petition is hereby allowed.

(ii) The impugned show cause notice at Annexure-B dated 29.01.2024 issued by respondent No.2 and all consequential proceedings pursuant thereto are hereby quashed. (S.R.KRISHNA KUMAR) JUDGE

SV List No.: 2 Sl No.: 68

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.