Karnataka High Court
M/S Syed Asad Ahmed vs Assistant Commissioner on 4 November, 2025
Author: M.Nagaprasanna
Bench: M.Nagaprasanna
-1-
NC: 2025:KHC-D:14979
WP No. 101432 of 2025
HC-KAR
IN THE HIGH COURT OF KARNATAKA, AT DHARWAD
DATED THIS THE 4TH DAY OF NOVEMBER, 2025
BEFORE
THE HON'BLE MR. JUSTICE M.NAGAPRASANNA
WRIT PETITION NO. 101432 OF 2025 (T-RES)
BETWEEN:
M/S. SYED ASAD AHMED,
24, ZEENATH HOUSE, MAIN ROAD,
COWL BAZAAR, BALLARI (BELLARY) - 583 102,
(REPRESENTED BY SYED ASAD AHMED,
PROPRIETOR, AGED ABOUT 38 YEARS,
S/O. SYED AHMED.
...PETITIONER
(BY SRI. RAGHAVENDRA C.R.,&
SRI. SHASHANK S. HEGDE, ADVOCATE)
AND:
1. ASSISTANT COMMISSIONER,
TAXES (ENFORECEMENT(-2,
RAGHAVENDRA COLONY,
2ND STAGE, 6TH CROSS, BALLARI - 583 101.
Digitally signed by 2. DEPUTY COMMISSIONER OF COMMERCIAL
RAKESH S TAXES AUDIT-1, VANIJYA TERIGE BHAVAN,
HARIHAR
Location: High 2ND STAGE, RAGHAVENDRA COLONY,
Court of Karnataka,
Dharwad Bench, ANANTAPUR, BALLARI - 583 101.
Dharwad
...RESPONDENTS
(BY SRI. T. HANUMAREDDY, AGA FOR RESPONDENT/STATE)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND
227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A
WRIT OF CERTIORARI OR ANY OTHER WRIT OR DIRECTION OR
ORDER TO QUASH FORM GST DRC-01 NO. ZD291124109231V
DATED. 22.11.2024 FOR THE PERIOD 2020-21 ISSUED BY THE
RESPONDENT NO.1, IS ENCLOSED AS ANNEXURE-A. ISSUE A
WRIT OF CERTIORARI OR ANY OTHER WRIT OR DIRECTION OR
ORDER TO QUASH IMPUGNED SHOW CAUSE NOTICE DATED.
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NC: 2025:KHC-D:14979
WP No. 101432 of 2025
HC-KAR
22.11.2024 BEARING NO. ACCT/ENF-2/BLY/ADJ-41/2024-25
FOR THE PERIOD 2020-21 ISSUED BY RESPONDENT NO.1,
ENCLOSED AS ANNEXURE-A1, FOR THE REASONS STATED IN
THE GROUNDS AND ETC.,
THIS WRIT PETITION, COMING ON FOR ORDERS THIS
DAY, ORDER WAS MADE THEREIN AS UNDER:
ORAL ORDER
(PER: THE HON'BLE MR. JUSTICE M.NAGAPRASANNA)
1. The learned counsel appearing for the petitioner submits that the show cause notice is now issued to the petitioner on the score or seeking the petitioner to show cause as to why GST should not be levied upon the solatium amount.
2. The learned counsel submits that the issue in the lis stands completely answered by the judgment rendered by the Co-ordinate Bench in Smt.Asha R. Vs.Assistant Commissioner of Commercial Taxes1.
3. The said judgment is followed by another Co-ordinate Bench in Writ Petition No.19351 of 2025, wherein the Co- ordinate Bench has held as follows:
"1. Petitioner is before this Court seeking for the following reliefs:
A) Issue a writ of certiorari or any other writ or direction or order to quash Order-In-Original bearing No.DGSTO-5/DC-5.9/ADJ-238/2024-25 for 1 (2025) 173 taxmann.com 863 (Karnataka) -3- NC: 2025:KHC-D:14979 WP No. 101432 of 2025 HC-KAR the period Apr 2020 to Mar 2021 issued by the respondent No.1, is enclosed as Annexure A. B) Issue a writ of certiorari or any other writ or direction or order to quash impugned summary of the order in FORM GSR DRC-07 bearing Reference No.ZD290225097894P for the period Apr 2020 to Mar 2021 issued by the respondent No.1, is enclosed as Annexure A1 for the reasons stated in the grounds C) Issue a writ of certiorari or any other writ or direction or order to quash show cause notice issued in FORM GST DRC-01 bearing no.ADCOM.SZACCT/ENF15/Sum No.05/2023-24 under Section 73(5) of the KGST Act, 2017 for the FY 2020 - 21 dated 19.09.2024 issued by the respondent No.2, is enclosed as Annexure B. D) Issue a writ of certiorari or any other writ or direction or order to quash summary of the show cause notice issued in FORM GST DRC-01 bearing no.ADCOM/SZACCT/ENF-15/Sum No.05/2023-24 under Section 73(5) of the KGST Act, 2017 for the FY 2020-21 dated 19.09.2024 issued by the respondent No.2, is enclosed as Annexure B1.
2. What is essentially challenged by the petitioner is the imposition of GST on the quantum of solatium awarded to the petitioner in pursuance of the acquisition of the land of the petitioner. This issue is no longer res integra and coordinate Bench of this Court has already considered in (2025) 29 CENTAX 391 (Kar.) has held that GST would not be applicable to the amount awarded to the land users as solatium.
3. In that view of the matter, I pass the following:
ORDER i. Writ petition is allowed. ii. ii. Annexures - A, A1, B and B1 are quashed. iii. iii. In view of the aforesaid annexures having quashed, if any coercive steps have been taken by -4- NC: 2025:KHC-D:14979 WP No. 101432 of 2025 HC-KAR the respondents are directed to reverse the same including any freezing of the bank account of the petitioner."
4. In the light of the issue standing completely answered by two of the afore-quoted judgments of the Co- ordinate Benches, the submission of the learned AGA that it is only a show cause notice is unacceptable.
5. However, the learned counsel for the petitioner submits that an Order-in-Original is passed at a subsequent point in time which is also impugned in the subject petition. Therefore, the petition deserves to succeed with the prayer that is sought and the Annexures as sought in the prayer to be quashed.
6. For the aforesaid reasons, the following:
ORDER i. Writ Petition is allowed. ii. The impugned orders dated 22.11.2024 vide Annexures-A & A1 stand quashed.
Sd/-
(M.NAGAPRASANNA) JUDGE KGK/CT-ASC List No.: 1 Sl No.: 9