Karnataka High Court
M/S Manyata Promoters Pvt Limited vs The Commissioner Of Commercital Taxes on 29 October, 2025
Author: S.R.Krishna Kumar
Bench: S.R.Krishna Kumar
-1-
NC: 2025:KHC:43292
WP No. 15207 of 2025
HC-KAR
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 29TH DAY OF OCTOBER, 2025
BEFORE
THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR
WRIT PETITION NO. 15207 OF 2025 (T-RES)
BETWEEN:
1. M/S MANYATA PROMOTERS PVT LIMITED
(INCORPORATED UNDER COMPANIES ACT, 2013)
NO.12, EMBASSY ONE, PINNACLE TOWER
BELLARY ROAD, GANGA NAGAR,
BANGALORE - 560 032
(REPRESENTED BY HEAD TAXATION
MS. LATA VISHNOI,
D/O MANGALARAMJI VISHNOI
AGED ABOUT 37 YEARS)
...PETITIONER
(BY SRI. ANAND N., ADVOCATE)
AND:
Digitally signed 1. THE COMMISSIONER OF COMMERCITAL TAXES
by GOVERNMENT OF KARNATAKA
SHARADAVANI
B COMMERCIAL TAXES DEPARTMENT,GST
Location: High VANIJYA THERIGE KARYALAYA
Court of
Karnataka 1ST MAIN ROAD
GANDHINAGAR
BANGALORE - 560 009
2. THE DEPUTY COMMISSIONER OF COMMERCIAL
TAXES, (AUDIT)-5.11, DGSTO-5
ROOM NO. 601, 6TH FLOOR,
B BLOCK, VTK-2
KORAMANGALA
BANGALORE - 560 047
...RESPONDENTS
(BY SRI. HEMAKUMAR, AGA for R1 & R2)
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NC: 2025:KHC:43292
WP No. 15207 of 2025
HC-KAR
THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF
THE CONSTITUTION OF INDIA PRAYING TOA) HOLD THAT THE
ASSESSMENT/ADJUDICATION ORDER U/S 73(9) OF THE
KGST/CGST ACT 2017 VIDE FORM GST DRC-07 BEARING
REFERENCE NO.ZD2902250947233 T/W ORDER
NO.DCCT(AUDIT)-5.11/24-25 DATED 24.02.2025 ENCLOSED
AT ANNEXURE-C PASSED BY THE RESPONDENT NO.2 AS
MANIFESTLY ILLEGAL AND IS CONTRARY TO GST PROVISIONS
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
Petitioner in this petition, seeks the following reliefs:
"WHEREFORE, it is most humbly and respectfully prayed by the Petitioner that this Honoratile Court may be pleased to (A) Hold that the Assessment/Adjudication Order u/s 73(9) of the KGST/CGST Act. 2017 vide Form GST DRC-
07 bearing Reference No.ZD2902250947233 /W Order No.DCCT(Audit)-5.11/24-25 dated 24.02.2025 enclosed at Annexure-C, passed by the Respondent No.2 as manifestly illegal and is contrary to GST provisions (B) Issue appropriate writ in the nature of certiorari by quashing the impugned Assessment/Adjudication Order u/s 73(9) of the KGST/CGST Act, 2017 vide Form GST DRC-07 bearing Reference No.ZD2902250947233 r/w Order No.DCCT(Audit)-5.11/24-25 dated 24.02.2025 enclosed at Annexure-C passed by the Respondent No.2 for the aforesaid reasons;
(C) Issue any other further order/orders or directions as this Honorable Court may deem fit and appropriate on the facts and circumstances of this case. -3-
NC: 2025:KHC:43292 WP No. 15207 of 2025 HC-KAR FOR THIS ACT OF KINDNESS THE PETITIONER ABOVEMENTIONED SHALL EVER PRAY."
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 KIADB. Subsequently, the respondent issued the show cause notice at Annexure- C dated 24.02.2025 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.
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 -4- NC: 2025:KHC:43292 WP No. 15207 of 2025 HC-KAR order dated 10.09.2024 passed by this Court in '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 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 -5- NC: 2025:KHC:43292 WP No. 15207 of 2025 HC-KAR 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 the show cause notice at Annexure-C dated 24.02.2025 and all consequential proceedings deserve to be quashed.
6. In the result, I pass the following:-
ORDER
(i) Petition is hereby allowed.
(ii) The show cause notice Annexure-C dated 24.02.2025 and all consequential proceedings pursuant thereto are hereby quashed.
Sd/-
(S.R.KRISHNA KUMAR) JUDGE BSV CT-SG List No.: 1 Sl No.: 8