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)
-2-
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.
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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
NC: 2025:KHC:43292
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
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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
