- 1 - HC-KAR NC: 2025:KHC:54380 WP No. 4569 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 18TH DAY OF DECEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 4569 OF 2025 (T-RES) BETWEEN: M BASAPPA REDDY LEGAL HEIR OF LATE R. SHAKUNTALA S/O LATE MUNIYAPPA, AGED ABOUT 78 YEARS. RESIDING AT: 15, GURAPPA AVENUE, PRIMROSE ROAD, BANGALORE - 560025. …PETITIONER (BY SRI. M.T.NANAIAH, SENIOR COUNSEL FOR SRI.ARVIND B.REDDY,ADVOCATE) AND: 1. STATE OF KARNATAKA REPRESENTED BY ITS PRINCIPAL SECRETARY DEPARTMENT OF FINANCE, VIDHANA SOUDHA, BANGALORE - 560001. 2. COMMISSIONER OF COMMERCIAL TAX KALIDASA MARG, GANDHINAGAR, VANIJYA THERIGE, KARYALAYA, BANGALORE - 560009. Digitally signed by SREEDHARAN BANGALORE SUSHMA LAKSHMI Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:54380 WP No. 4569 of 2025 3. ASSISTANT COMMISSIONER OF COMMERCIAL TAX (AUDIT)4.8 DGSTO-4, CABIN NO. 9, 5TH FLOOR, BMTC BUILDING, 80 FEET ROAD, KORAMANGALA 6TH BLOCK, BANGALORE - 560095 …RESPONDENTS (BY SRI.K.HEMA KUMAR, AGA) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE SHOW CAUSE NOTICE DATED 25-01-2024 BEARING NO.ADCOM /ENF/SZ/ACCT-09/SUM/2023-24 (ANNEXURE A) ISSUED BY THE 3RD RESPONDENT AND ALSO THE ORDER DATED 28TH AUGUST 2024 BEARING FILE NO.ACCT(AUDIT)-4.8/DGSTO-4/73/24-25 PASSED BY THE 3RD RESPONDENT AT (ANNEXURE B) AS BEING WITHOUT JURISDICTION, VOID AB INITIO AND A NULLITY BY WAY OF WRIT IN THE NATURE OF CERTIORARI OR ANY OTHER APPROPRIATE WRIT, ORDER OR DIRECTION AND ETC. THIS PETITION, COMING ON FOR FINAL HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR - 3 - HC-KAR NC: 2025:KHC:54380 WP No. 4569 of 2025 ORAL ORDER In this petition, petitioner seeks the following reliefs: "a) QUASH the Show Cause Notice dated 25-01- 2024 bearing No.ADCOM/ENF/SZ/ACCT- 09/SUM/2023-24 (Annexure A) issued by the 3rd respondent and also the order dated 28th August 2024 bearing File No.ACCT(Audit)-4.8/DGSTO- 4/73/24-25 passed by the 3rd respondent at (Annexure B) as being without jurisdiction, void ab initio and a Nullity by way of writ in the nature of Certiorari or any other appropriate writ, order or direction: b) Issue such other writ, order or further relief, as this Hon'ble Court deems fit, to meet the ends of justice. 2. Heard learned counsel for the petitioner and learned AGA for the respondents 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 - 4 - HC-KAR NC: 2025:KHC:54380 WP No. 4569 of 2025 KIADB. Subsequently, the respondent No.3 issued Show Cause Notice dated 25.01.2024 at Annexure – A and order dated 28.08.2024 at Annexure - B calling upon the petitioner to pay GST on the solatium component in the compensation received by the petitioner to which the petitioner submitted a letter dated 27.07.2024 at Annexure – E and requested to drop the proceedings. Subsequently, without considering the said letter submitted by the petitioner, the respondent No.3 proceeded to pass the impugned order dated 28.08.2024 under Section 73 of CGST/KGST Act, 2017 read with Section 20 of IGST Act, 2017 and aggrieved by the said order, the petitioner is before this Court by way of the present petition. 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:- - 5 - HC-KAR NC: 2025:KHC:54380 WP No. 4569 of 2025 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 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 - 6 - HC-KAR NC: 2025:KHC:54380 WP No. 4569 of 2025 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 show cause notice dated 25.01.2024 and adjudication order dated 28.08.2024 at Annexures – A and B and all consequential proceedings deserve to be quashed. 6. In the result, I pass the following:- ORDER (i) Petition is hereby allowed. (ii) The impugned show cause notice dated 25.01.2024 at Annexure - A and impugned adjudication order dated 28.08.2024 at Annexure - B and all consequential proceedings pursuant thereto are hereby quashed. Sd/- (S.R.KRISHNA KUMAR) JUDGE UN, List No.: 2 Sl No.: 4