BharatTaxGST

Shri Rakesh Bijjawara Narayanswamy vs. State Of Karnataka

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WP/12724/2025HC KarnatakaGSTCNR KAHC01028834202526 April 2025Bench: S.R.KRISHNA KUMAR5 pages
For Petitioner: SRI. ANIL KUMAR B, ADVOCATEFor Respondent: SMT. JYOTHI.M.MARADI, HCGP

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Cause title — parties, addresses and appearances
- 1 - NC: 2025:KHC:17323 WP No. 12724 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 26TH DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 12724 OF 2025 (T-RES) BETWEEN: SHRI RAKESH BIJJAWARA NARAYANSWAMY, NO.566, SECTOR A, 7TH ‘A’ MAIN, YELAHANKA, BENGALURU – 560 064. …PETITIONER (BY SRI. ANIL KUMAR B,ADVOCATE) AND: 1. STATE OF KARNATAKA THROUGH ITS PRINCIPAL SECRETARY, FINANCE DEPARTMENT, VIDHANA SOUDHA, BENGALURU – 560 001. 2. THE COMMISSIONER OF COMMERCIAL TAXES IN KARNATAKA, VANIJYA THERIGE KARYALAYA, GANDHINAGAR, BENGALURU – 560 009. 3. THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES (ENF)-14,SOUTH ZONE, 2ND FLOOR, V.T.K-2 BUILDING, KORAMANGALA, BENGALURU – 560 047. 4. THE DEPUTY COMMISSIONER OF COMMERCIAL TAXES(AUDIT)-5.9, DGSTO-5, B-BLOCK, ROOM NO.601, 6TH FLOOR, V.T.K. BUILDING, KORAMANGALA, BENGALURU – 560 047. …RESPONDENTS (BY SMT. JYOTHI.M.MARADI, HCGP) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER NO. DGSTO- 5/DC-5.9/ADJ-184/2024-25 DTD. 24.02.2025 AND SUMMARY OF THE ORDER IN FORM GST DRC-07 REFERENCE NO. ZD290225097410D DTD. Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - NC: 2025:KHC:17323 WP No. 12724 of 2025 24.02.2025 PASSED BY R-4 VIDE ANNX-A TO THE WRIT PETITION AND ETC. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER

In this petition, petitioner seeks for the following reliefs:-

“a. Issue a writ of certiorari quashing the Order No.DGSTO-5/DC-5.9/ADJ-184/2024-25 dated 24.02.2025 and Summary of the Order in Form GST DRC-07 Reference No.ZD290225097410D dated 24.02.2025 passed by Respondent No.4 vide Annexure-A to the Writ Petition. b. Grant such other order or direction as deemed fit by this Hon’ble Court in the facts and circumstances of the case. ”

2.

Heard learned counsel for the petitioner and learned HCGP for the respondent 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 NC: 2025:KHC:17323 Agreements, documents etc., executed between the petitioner and KIADB. Subsequently, the respondent issued the impugned show cause notice at Annexure-G dated 24.09.2024 calling upon the petitioner to pay GST on the solatium component in the compensation received by the petitioner. As the notice was uploaded only in the portal, the petitioner was unaware of the same. Subsequently, respondent No.4 proceeded to pass the impugned order dated 24.02.2025 under Section 73(9) of CGST/KGST Act, 2017 and aggrieved by the said order, the petitioner 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 directly and squarely covered by the order dated 10.09.2024 passed by this Court in the case of ‘Smt. Asha R., Vs. The Assistant Commissioner of Commercial Taxes and Anr’ passed in W.P.No.2552/2024 and connected matters, wherein it is held as under:- “11. In the result, I pass the following:- ORDER NC: 2025:KHC:17323 (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 NC: 2025:KHC:17323

26.09.

2023 issued in W.P.No.5858/2024 and all consequential proceedings are hereby quashed.”

5.

In view of the aforesaid facts and circumstances and the judgment of this Court referred to supra, I am of the view that the present petition deserves to be allowed and impugned adjudication order at Annexure-A dated 24.02.2025 and the impugned show cause notice dated 24.09.2024 at Annexure-G and all consequential proceedings deserve to be quashed.

6.

In the result, I pass the following:- ORDER

(i) Petition is hereby allowed.

(ii) The impugned adjudication order at Annexure-A dated 24.02.2025 and the impugned show cause notice dated 24.09.2024 at Annexure-G and all consequential proceedings pursuant thereto are hereby quashed. (S.R.KRISHNA KUMAR) JUDGE

MDS List No.: 2 Sl No.: 35

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.