Karnataka High Court
M/S. Esteem Icon vs Office Of The Deputy Commissioner on 2 April, 2025
Author: S.R.Krishna Kumar
Bench: S.R.Krishna Kumar
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NC: 2025:KHC:13792
WP No. 9717 of 2025
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 2ND DAY OF APRIL, 2025
BEFORE
THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR
WRIT PETITION NO. 9717 OF 2025 (T-RES)
BETWEEN:
M/S. ESTEEM ICON
NO.32, 33 AND 34,
SNS CHAMBERS, 3RD FLOOR,
239 SANKEY ROAD,
BENGALURU- 560 080.
A REGISTERED PARTNERSHIP FIRM
GST NO. 29AACFE2662E1ZM
REPRESENTED BY ITS PARTNER
MR GAURAV AHUJA
...PETITIONER
(BY SRI. VEENA J KAMATH., ADVOCATE)
AND:
1. OFFICE OF THE DEPUTY COMMISSIONER
OF COMMERCIAL TAXES (AUDIT)-1-3, DGSTO-1,
Digitally TTMC BUILDING,
signed by YESHWANTHPUR,
NANDINI D BANGALORE- 560 022
Location:
High Court 2. ASSISTANT COMMISSIONER
of Karnataka OF COMMERCIAL TAXES (ENF)-1,
SOUTH ZONE, BANGALORE,
VANIJYA THERIGE KARYALAYA-II,
KORAMANGALA,
BENGALURU- 560 047
...RESPONDENTS
(BY SRI. HEMA KUMAR, AGA)
THIS WRIT PETITION IS FILED UNDER ARTICLE 226 AND 227
OF THE CONSTITUTION OF INDIA PRAYING TO DECLARE THAT
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NC: 2025:KHC:13792
WP No. 9717 of 2025
THE AMOUNT RECEIVED AS SOLATIUM BY THE PETITIONER
UNDER THE RIGHT TO FAIR COMPENSATION AND
TRANSPARENCY IN LAND ACQUISITION REHABILITATION AND
RESETTLEMENT ACT, 2013 IS NOT EXIGIBLE TO TAX UNDER THE
KGST AND CGST ACT, 2017; AND ETC.
THIS PETITION, COMING ON FOR PRELIMINARY HEARING,
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. Declare that the amount received as Solatium by the petitioner under the Right to Fair Compensation and Transparency in Land Acquisition Rehabilitation and Resettlement Act, 2013 is not exigible to tax under the KGST and CGST Act, 2017;
b. Set aside the impugned order dated 31.12.2024 bearing No.DGSTO-1/DCCT(AUDIT)-1.3/A&A.NO. 632/2024-25 issued by the Respondent No.1 under Section 73(9) CGST/KGST Act, 2017 r/w 20 of the IGST Act, 2017 at Annexure-A and all other consequential proceedings by issuing a writ of certiorari or any other Order in the nature of a Writ of Certiorari;
c. Grant any other relief in favour of the petitioner as this Hon'ble Court deems fit, in the interest of justice and equity."-3-
NC: 2025:KHC:13792 WP No. 9717 of 2025
2. Heard learned counsel for the petitioner and learned AGA 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 Agreements, documents etc., executed between the petitioner and KIADB. Subsequently, the respondent issued the impugned show cause notice at Annexure-B dated 14.12.2023 calling upon the petitioner to pay GST on the solatium component in the compensation received by the petitioner, to which the petitioner made a representation dated 20.12.2023 before the respondent disputing the demand made in the said Show Cause Notice. Subsequently, respondent No.1 without considering the said reply filed by the petitioner proceeded to pass the impugned order dated 31.12.2024 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.
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NC: 2025:KHC:13792 WP No. 9717 of 2025
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
(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.
(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 -5- NC: 2025:KHC:13792 WP No. 9717 of 2025 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."
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 31.12.2024 and the impugned show cause notice dated 14.12.2023 at Annexure-B and all consequential proceedings deserve to be quashed.
6. In the result, I pass the following:-
ORDER
(i) Petition is hereby allowed.-6-
NC: 2025:KHC:13792 WP No. 9717 of 2025
(ii) The impugned adjudication order at Annexure-A dated 31.12.2024 and the impugned show cause notice dated 14.12.2023 at Annexure-B and all consequential proceedings pursuant thereto are hereby quashed.
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(S.R.KRISHNA KUMAR) JUDGE MDS List No.: 1 Sl No.: 32