M/S Padmavathy Trust vs. The Assistant Commissioner Of
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Cause title — parties, addresses and appearances
ORAL ORDER
In this petition, petitioner seeks for 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 30.12.2024 for the period April 2020 to March 2021 passed by the Respondent No.1 bearing No.ACCT(AUDIT-6.10) NC: 2025:KHC:14527 /(ADJ)/Ord-121/2024-25, herein marked as Annexure-A1. ii) Issue a writ of Certiorari and direction in the nature of a writ of certiorari quashing the online order dated 30.12.2024 for the period April 2020 to March 2021 passed by the Respondent No.1 bearing Reference No. ZD291224094978L, herein marked as Annexure-A2. iii) 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 30.12.2024 for the period April 2020 to March 2021 issued by the Respondent No.1 bearing Reference No. ZD291224094978L, herein marked as Annexure- A3. iv) Issue a writ of Certiorari and direction in the nature of a writ of certiorari quashing the Order of Adjudication dated 30.12.2024 for the period April 2021 to March 2022 passed by the Respondent No.1 bearing No. ACCT(AUDIT) 6.10/(ADJ)/Ord- 122/2024-25, herein marked as Annexure-B1. v) Issue a writ of Certiorari and direction in the nature of a writ of certiorari quashing the online order dated 30.12.2024 for the period April 2021 to March 2022 issued by the Respondent No.1 bearing NC: 2025:KHC:14527 Reference No. ZD2912240950980, herein marked as Annexure-B2. vi) 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 30.12.2024 for the period April 2021 to March 2022 issued by the Respondent No.1 bearing Reference No ZD2912240950980, herein marked as Annexure- B3. vii) Issue a writ of Certiorari and direction in the nature of a writ of certiorari quashing the show cause notice dated 20.11.2023 for the financial years 2020-21 and 2021-22 issued by the Respondent No.2 bearing File No. DCCT(Enf)- 4/SZ/No.06/DRC-1/2023-24, herein marked as Annexure-C1. viii) Issue a writ of Certiorari and direction in the nature of a writ of certiorari quashing the Summary of the Show cause notice in Form GST DRC-01 dated 20.11.2023 for the financial years 2020-21 and 2021-22 issued by the Respondent No.2 bearing RFN-MA291123085065Y, herein marked as Annexure-C2. ix) Issue a writ of Certiorari and direction in the nature of a writ of certiorari quashing the online Summary of the Show cause notice in Form GST NC: 2025:KHC:14527 DRC-01 dated 01.10.2024 for the financial year 2020-21 issued by the Respondent No.1 bearing Reference No. - ZD291024000488K, herein marked as Annexure-C3. x) Issue a writ of Certiorari and direction in the nature of a writ of certiorari quashing the online Summary of the Show cause notice in Form GST DRC-01 dated 01.10.2024 for the financial year 2021-22 issued by the Respondent No.1 bearing Reference No. ZD291024000664Q, herein marked as Annexure-C4. xi) Pass such other orders as this Hon'ble Court deems fit and proper, including awarding the costs of this writ petition, in the interest of justice and equity."
Heard learned counsel for the petitioner, learned HCGP 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 NC: 2025:KHC:14527 cause notice at Annexure-C1 dated 20.11.2023, 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 W.P.No.2552/2024 and connected matters, wherein it is held as under:- "
In the result, I pass the following:- ORDER (i) W.P.No.2552/2024, W.P.No.17524/2024, W.P.No.10838/2024, W.P.No.4571/2024 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:14527 (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 W.P.No.4571/2024 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 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-C1 dated 20.11.2023 and all consequential proceedings deserve to be quashed.
In the result, I pass the following:- ORDER (i) The petition is hereby allowed. NC: 2025:KHC:14527 (ii) The impugned show cause notice at Annexure-C1 dated 20.11.2023 and all consequential proceedings pursuant thereto are hereby quashed. (S.R.KRISHNA KUMAR) JUDGE BMV* List No.: 1 Sl No.: 23
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.