Sri. Shamanna Lokesh vs. State Of Karnataka
Original PDF →No AI summary yet for this judgment.
Cause title — parties, addresses and appearances
ORDER UNDER SECTION 73(9) BEARING ACCT(A)-5.1/DGSTO-5/2023-24/ (CASE ID. AD290923018443Y) DATED 30.12.2023 PASSED BY THE 3RD RESPONDENT (ANNEXURE-B) AND ACKNOWLEDGMENT FOR SUBMISSION OF APPEAL DATED 03.03.2025 ISSUED IN FORM GST APL-02 BY THE JOINT COMMISSIONER OF COMMERCIAL TAXES (APPEALS)-5, BANGALORE (ANNEXURE-C) 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 or order or direction in the nature of Certiorari by quashing the impugned Show cause notice No. ACCT(A)-5.1/DGSTO-5/2023-24/ in GST DRC-01 dated 30-09-2023 along with Summary of Show Cause Notice dated 30.09.2023 Reference No. ZD2909230564441 issued by the 3rd Respondent (Annexure- 'A'), Ex parte Order under Section 73(9) bearing ACCT(A)-5.1/DGSTO-5/2023-24/ (Case Id.: AD290923018443Y) dated 30.12.2023 passed by the 3rd NC: 2025:KHC:16073 Respondent (Annexure- 'B') and Acknowledgment for submission of appeal dated 03.03.2025 issued in FORM GST APL-02 by the Joint Commissioner of Commercial taxes (Appeals)-5, Bangalore (Annexure- 'C');
b) Issue a writ or order or direction in the nature of any writ declaring that the Compensation received as "Solatium" by the Petitioner towards compensation for acquisition of land is not a consideration for supply of goods or services falling within the ambit of Sections 7(1) read with Section9(1)read with Section 2(31) of the Central / State Goods and Service Tax Act, 2017 and consequently, the same does not attract GST;
c) Pass such other order(s) or direction(s) as deemed fit and proper in the facts and circumstances of the case in the interest of justice.
Heard learned counsel for the petitioner and learned AGA for the respondents and perused the material on record.
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-A dated 30.09.2023, calling upon the NC: 2025:KHC:16073 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.
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 ‘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 (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. NC: 2025:KHC:16073 (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.”
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 the impugned show cause notice at Annexure-A dated 30.09.2023 and all consequential proceedings deserve to be quashed.
In the result, I pass the following:- ORDER
(i) Petition is hereby allowed. NC: 2025:KHC:16073 (ii) The impugned show cause notice Annexure-A dated 30.09.2023 and all consequential proceedings pursuant thereto are hereby quashed. (S.R.KRISHNA KUMAR) JUDGE
BMC List No.: 1 Sl No.: 63
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.