Sri Mandalappa Muniswamappa vs. Additional Commissioner Of Commercial Taxes
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Cause title — parties, addresses and appearances
ORAL ORDER In this petition, petitioner seeks for the following reliefs:- “a) Issue a Writ of Certiorari or any direction to quash and strike down the impugned Order bearing 513/2024-25 dated 31.08.2024 for F.Y 2019-20; under Section 73 of the KGST Act, 2017 r/w. CGST Act, 2017, IGST Act, 2017 and GST (Compensation) Act, 2017 vide Annexure-F as being void, illegal, beyond authority and hence, unconstitutional.
b) Declare the act of Respondent of issuing the impugned order vide Annexure-f is bad in law.
c) Any other relief/s as this Hon’ble Court deems fit in the interest of justice and equity.”
Heard learned counsel for the petitioner and learned AGA for the respondent 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 NC: 2025:KHC:14503 KIADB. Subsequently, the respondent issued the impugned show cause notice at Annexure-D dated 21.12.2023 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 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:-
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. NC: 2025:KHC:14503 (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.
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-D dated 21.12.2023 and all consequential proceedings deserve to be quashed. NC: 2025:KHC:14503
In the result, I pass the following:- ORDER
(i) Petition is hereby allowed.
(ii) The impugned show cause notice Annexure-D dated 21.12.2023 and all consequential proceedings pursuant thereto are hereby quashed. (S.R.KRISHNA KUMAR) JUDGE
BMC List No.: 1 Sl No.: 74
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.