- 1 - HC-KAR NC: 2026:KHC:22181-DB STRP No. 63 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23RD DAY OF APRIL, 2026 PRESENT THE HON'BLE MR. JUSTICE S.G.PANDIT AND THE HON'BLE MR. JUSTICE K. V. ARAVIND SALES TAX REVISION PETITION NO.63 OF 2025 BETWEEN: 1. THE JOINT COMMISSIONER OF COMMERCIAL TAXES, (APPEALS)-3, BMTC BUILDING, 2ND FLOOR, 'B' BLOCK, SHANTHINAGAR, BENGALURU - 560 027. 2. ASSISTANT COMMISSIONER OF COMMERCIAL TAXES (AUDIT) - 3.4, DVO-3, BMTC BUILDING, 2ND FLOOR, "B" BLOCK, SHANTHINAGAR, BENGALURU - 560027. …PETITIONERS (BY SRI. ADITYA VIKRAM BHAT, AGA) AND: 1. M/S. ESSEM 18 CONSTRUCTION NO. 64/1, 2ND FLOOR, DVG ROAD, BASAVANAGUDI, BENGALURU - 560 094. Digitally signed by VINUTHA B S Location: High Court of Karnataka - 2 - HC-KAR NC: 2026:KHC:22181-DB STRP No. 63 of 2025 …RESPONDENT (BY SRI. JOSEPH VARGHESE, ADVOCATE) THE STRP IS FILED UNDER SEC.65(1) OF THE KARNATAKA VALUE ADDED TAX ACT, 2003 AGAINST THE JUDGMENT DATED 28.03.2025, PASSED IN STA.NO.111, 289 AND 290/2017 ON THE FILE OF KARNATAKA APPELLATE TRIBUNAL AT BANGALORE, ALLOWING THE APPEALS AND SETTING ASIDE THE ORDER DATED 17.01.2017 PASSED IN VAT.AP/1212/15-16, VAT.AP.1213/2015-16 AND VAT.AP1309/2015-16, ON THE FILE OF JOINT COMMISSIONER OF COMMERCIAL TAXES,(APPEALS)-3, BENGALURU., FOR THE TAX PERIOD FOR THE PERIOD 2012-13 TO 2013-14 AND ETC. THIS PETITION, COMING ON FOR DISPOSAL, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.G.PANDIT and HON'BLE MR. JUSTICE K. V. ARAVIND - 3 - HC-KAR NC: 2026:KHC:22181-DB STRP No. 63 of 2025 ORAL ORDER (PER: HON'BLE MR. JUSTICE S.G.PANDIT) Heard Sri. Aditya Vikram Bhat, learned Additional Government Advocate for the petitioners and Sri. Joseph Varghese, learned counsel for the respondent. 2. The above appeal is admitted to examine the following three substantial questions of law: (i) Whether a joint development agreement ("JDA") entered into between a landowner and a developer is a works contract taxable under the provisions of the KVAT Act? (ii) Whether the transaction/joint development agreement between the landowner and the developer amounts to a 'barter/exchange' amounts and if yes, whether it is concluded to 'sale' of goods within the definition in Section 2(29) of the Karnataka Value Added Tax Act, 2003? (iii) Whether tribunal has erred in holding that the disallowance of exemption of the value of the undivided share of land received from the purchasers of the developer's share of flats, amounts to levy of VAT on immovable property / land, which the State Legislature lacks the power to - 4 - HC-KAR NC: 2026:KHC:22181-DB STRP No. 63 of 2025 tax under Entry 54 of List II of the Seventh Schedule of the Constitution of India? 3. The above substantial questions of law are answered in favour of the respondent-assessee in STRP No.181/2018 and connected matters, disposed of on 17.04.2026. By following the said decision, the present petition also stands disposed off, answering the substantial questions of law in favour of respondent/assessee and against petitioners/revenue. SD/- (S.G.PANDIT) JUDGE SD/- (K. V. ARAVIND) JUDGE SMJ List No.: 1 Sl No.: 35