Mr.R. Ashok Kumar vs. The Assistant Commissioner Of
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Cause title — parties, addresses and appearances
ORAL ORDER
In this petition, petitioner seeks the following reliefs:
" (a) Issue a writ of certiorari or any other appropriate writ, order, or direction quashing the impugned Order No. ACCT/Audit-3.5/DRC-7/AJD.35/2024-2025 dated 31.08.2024 (Annexure-A) passed by the Respondent No.1;
(b) Declare that solatium received by the Petitioner for compulsory acquisition of land is not liable to GST under Section 7(2) read with Schedule III of the CGST/KGST Acts, 2017;
Without prejudice to the above and in any event,
(c) Condone the delay in filing an appeal, if any, and permit the Petitioner to approach the Joint Commissioner of Commercial Taxes (Appeals) without prejudice to the merits of the Petitioner's contentions, along with a direction that no coercive steps shall be taken during the pendency of the appellate proceedings; and (d) Pass such other or further orders as this Hon'ble Court may deem fit in the interest of justice and equity." NC: 2025:KHC:14620
Heard learned counsel for the petitioner and learned Addl. Government Advocate 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-E, dated 11.01.2024, 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.
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:- NC: 2025:KHC:14620
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. NC: 2025:KHC:14620 (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-E, dated 11.01.2024 and all consequential proceedings deserve to be quashed.
In the result, I pass the following:- ORDER
(i) Petition is hereby allowed.
(ii) The impugned show cause notice Annexure-E, dated 11.01.2024 and all consequential proceedings pursuant thereto are hereby quashed. (S.R.KRISHNA KUMAR) JUDGE
BK : List No.: 1 Sl No.: 78
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.