Allowed¶39-41

M Basappa Reddy v. State of Karnataka

GST – Karnataka

Karnataka HC2 Jun 2025WP/14639/2025

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AI extract

What is this about?

HC-KAR allowed WP No. 14639 of 2025 (T-RES) filed under Articles 226/227 challenging a GST demand of Rs. 1,63,17,173/- raised on 'Solatium' received from KIADB; the show cause notice dated 21.01.2025 and the order dated 06.03.2025 passed by respondent No. 4 under S. 63 KGST Act r/w Ss. 122(1) and 50 were quashed in view of the Court's earlier ruling in W.P.No.2552/2024 and connected matters (10.09.2024) that 'Solatium' is not exigible under GST.

What did the court decide?

Quashing of the Show Cause Notice dated 21.01.2025 bearing File No. DCCT (A)-1.6/DGSTO1/2024-25 [Annexure-A] and the Order dated 06.03.2025 bearing File No. DCCT (A)-1.6/DGSTO-1/01/2024-25 [Annexure-B] passed by the fourth respondent. ¶39-41

M Basappa Reddy Vs State of Karnataka — GST and Indirect Tax | Karnataka HC (2025)

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NC: 2025:KHC:18470 WP No. 14639 of 2025

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HC-KAR

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 2^ND DAY OF JUNE, 2025

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BEFORE

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THE HON'BLE MR JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 14639 OF 2025 (T-RES)

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BETWEEN:

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M BASAPPA REDDY S/O. LATE MUNIYAPPA, AGED ABOUT 78 YEARS, RESIDING AT NO. 15, GURAPPA AVENUE, PRIMROSE ROAD, BANGALORE-560 025,

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…PETITIONER

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(BY SRI. M. T. NANAIAH, SENIOR ADVOCATE FOR SRI. SIDDALINGAIAH B.,ADVOCATE)

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Digitally signed by VANAMALA N

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Location: High Court of Karnataka

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AND:

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STATE OF KARNATAKA REPRESENTED BY ITS PRINCIPAL SECRETARY, DEPARTMENT OF FINANCE, VIDHANA SOUDHA, BANGALORE-560 001.

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COMMISSIONER OF COMMERCIAL TAX KALIDASA MARG, GANDHINAGAR, VANIJYA THERIGE KARYALAYA, BANGALORE-560 009.

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NC: 2025:KHC:18470 WP No. 14639 of 2025

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HC-KAR

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ASSISTANT COMMISSIONER OF COMMERCIAL TAX (ENF) 03 SOUTH ZONE BANGALORE CABIN NO. 9, 5TH FLOOR, BMTC BUILDING, 80 FEET ROAD, KORAMANGALA, 6TH BLOCK, BANGALORE-560 095.

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DEPUTY COMMISSIONER OF COMMERCIAL TAX (AUDIT)1.6 DGSTO-1 BMTC, 5TH FLOOR, YASHWANTHPUR, BANGALORE-560 022.

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…RESPONDENTS

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(BY MS. JYOTI M., HCGP)

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THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTIUTITON OF INDIA PRAYING TO QUASH THE SHOW CAUSE NOTICE DTD. 21.01.2025 BEARING FILE NO. DCCT(A)1.6/DGSTO-1/2024-25 (ANNX-A) ISSUED BY THE R- 4 AND ALSO THE ORDER DTD. 06.03.2025 BEARING FILE NO. DCCT(A)-1.6/DGSTO1/01/2024-25 PASSED BY THE R-4 AT (ANNX-B) PASSED UNDER SECTION 63 OF THE KGST ACT, 2017 AND READ WITH SECTION 122(1) AND 50 OF THE KGST ACT, 2017 AND CGST ACT, 2017 DIRECTING THE PETITIONER TO PAY AN AMOUNT OF RS. 1,63,17,173/- BY WAY OF WRIT IN THE NATURE OF CERTIORARI OR ANY OTHER APPROPRIATE WRIT, ORDER OR DIRECTION.

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THIS PETITION, COMING ON FOR FINAL HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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NC: 2025:KHC:18470 WP No. 14639 of 2025

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HC-KAR

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CORAM: HON'BLE MR JUSTICE B M SHYAM PRASAD

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ORAL ORDER

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The petitioner has called in question the following:

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a. The Show Cause Notice dated 21.01.2025 bearing File No. DCCT (A)-1.6/DGSTO1/2024-25 [ANNEXURE-A] and

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b. The Order dated 06.03.2025 bearing File No. DCCT (A)-1.6/DGSTO-1/01/2024-25 passed by the fourth respondent [ANNEXURE-B].

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It remains undisputed that these relate to the

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amounts received by the petitioner from M/s. Karnataka Industrial Areas Development Board [KIADB] as 'Solatium', and that the question whether 'Solatium' is exigible under GST has been considered by this Court in the writ petitions in W.P.No.2552/2024 and connected matters, which are disposed of on 10.09.2024, holding that the amount received as 'Solatium' will not be exigible.

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NC: 2025:KHC:18470 WP No. 14639 of 2025

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HC-KAR

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In the light of these circumstances, the petition

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is allowed and the aforesaid Show Cause Notice and

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the Order are quashed.

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