Thimmareddy Munjula Vs the Assistant Commissioner of

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NC: 2025:KHC:15384 WP No. 4870 of 2025

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 9^TH DAY OF APRIL, 2025

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BEFORE

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THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 4870 OF 2025 (T-RES)

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BETWEEN:

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MS. THIMMAREDDY MUNJULA D/O. LATE THIMMAREDDY, AGED ABOUT 64 YEARS, R/A.NO.5, 1^ST ‘A’ CROSS, THIMMAREDDY, KHB COLONY, MIG, 5^TH BLOCK, KORAMANGALA, BENGALURU – 560 095.

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…PETITIONER

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(BY SRI. SUHAS H S., ADVOCATE)

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AND:

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Digitally signed by CHANDANA B M Location: High Court of Karnataka

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THE ASSISTANT COMMISSIONER OF OF COMMERCIAL TAXES (ENFORCEMENT 16), SOUTH ZONE, ROOM NO.406, 4^TH FLOOR, B BLOCK, VTK 2, KORAMANGALA, BENGALORE – 560 047.

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DEPUTY COMMISSIONER OF COMMERCIAL TAXES, (AUDIT-4.1), NO, 601, 6^TH FLOOR, BMTC DEPOT, TTMC BUILDING, NEAR SONY SIGNAL, KORAMANGALA BENGALURU-560 095.

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…RESPONDENTS

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(BY SRI.K. HEMA KUMAR, AGA)

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THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE GST FORM DRC-07 ALONG WITH THE ORDER OF ADJUDICATION BEARING NO. DCCT(AUDIT) 4.1/GST-ADJ/2024-25 DTD. 12.08.2024 TOWARDS NONPAYMENT OF GST ON SOLATIUM AS PER SECTION 7 (1A) READ WITH ENTRY NO.5(C) OF SCHEDULE II OF THE KGST ACT, 2017 ISSUED BY THE R-2 TO THE PETITIONER VIDE ANNX-A AND B TO THE WRIT PETITION AND ETC.

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NC: 2025:KHC:15384 WP No. 4870 of 2025

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

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CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR

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ORAL ORDER

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In this petition, petitioner seeks the following reliefs:-

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“a. Issue a writ of certiorari or an order of such nature quashing the GST form DRC-07 along with the order of adjudication bearing No.DCCT (Audit) 4.1/GSTADJ/2024-25 dated 12.08.2024 towards non-payment of GST on solatium as per section 7(1A) read with Entry No.5(c) of Schedule II of the KGST Act, 2017 issued by the respondent No.2 to the petitioner vide Annexures – A & B to the writ petition; and

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b. Issue a writ of certiorari or an order of such nature quashing the form GST DRC-13 bearing No. DGSTO-4/DCCT/(A)-4.1/2024-25 dated 10.12.2024 issued by the respondent No.2 to the petitioner vide Annexure-M to the writ petition; and

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c. Pass any other order as deemed fit by this Hon’ble Court in the interest of justice and equity.”

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2. Heard learned counsel for the petitioner and learned

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AGA for the respondents and perused the material on record.

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3 - NC: 2025:KHC:15384 WP No. 4870 of 2025

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3. A perusal of the material on record will indicate that

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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 Intimation at Annexure-G dated 05.09.2023 calling upon the petitioner to pay GST on the solatium component in the compensation received by the petitioner, to which the petitioner submitted a letter dated 25.09.2023 before the respondent requesting to extend the time till 30.09.2023 since her auditor was not available at that time. Subsequently, respondent No.1 issued Show Cause Notices at Annexures – J and K dated 09.11.2023 to which the petitioner submitted a letter dated 30.11.2023 at Annexure – L and requested to drop the proceedings. Subsequently, without considering the said letter submitted by the petitioner proceeded to pass the impugned order dated 12.08.2024 under Section 73(9) of CGST/KGST Act, 2017 and aggrieved by the said order, the petitioner is before this Court by way of the present petition.

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NC: 2025:KHC:15384 WP No. 4870 of 2025

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4. The issue involved in the present petition as to whether

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solatium received by the petitioner is exigible / amenable to GST is directly and squarely covered by the order dated 10.09.2024 passed by this Court in the case of ‘ 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:-

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“11. In the result, I pass the following:-

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ORDER

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(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.

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(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.

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(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.

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(iv) The impugned Orders at Annexures-A and A1 both dated 20.03.2024 and impugned Notices at AnnexuresB and B1 both dated 09.10.2023 issued in

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W.P.No.17524/2024 and all consequential proceedings are hereby quashed.

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(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.

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(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.

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(vii) The impugned Order at Annexure-A dated 20.12.2023 and show cause Notice at Annexure-F dated 26.09.2023 issued in W.P.No.5858/2024 and all consequential proceedings are hereby quashed.”

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In view of the aforesaid facts and circumstances and

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the judgment of this Court referred to supra, I am of the view that the present petition deserves to be allowed and impugned adjudication order at Annexures – A and B dated 12.08.2024 and all consequential proceedings deserve to be quashed.

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In the result, I pass the following:-

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ORDER

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(i) Petition is hereby allowed .

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NC: 2025:KHC:15384 WP No. 4870 of 2025

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(ii) The impugned adjudication order at Annexures – A and B dated 12.08.2024 and the impugned show cause notices at Annexures – J and K dated 09.11.2023 and all consequential proceedings pursuant thereto are hereby quashed.

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Sd/(S.R.KRISHNA KUMAR) JUDGE

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SV

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List No.: 3 Sl No.: 8

Thimmareddy Munjula v. the Assistant Commissioner of

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Thimmareddy Munjula v. the Assistant Commissioner of

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