Bombay High Court Restrains GST Dept. From Passing Final Order On Demand Notices Against Delta Corp.

The Bombay High Court has restrained the GST Department from passing final order on demand notices against Delta Corp.

The bench of Justice M.S. Sonak and Justice Bharat P. Deshpande while listing the matter on 5 February 2024 issued the notice to the centre.

In addition to contesting several other circulars, clarifications, and rate notifications issued by the Central Board of Indirect Taxes and Customs (CBIC), the petitioner/assessee, Delta Corp., had also challenged Rule 31A of the Central Goods and Services Tax Rules, 2017 and Section 15(5) of the Central Goods and Services Tax Act, 2017.

Rule 31A relates to the value of supply in the case of the lottery, betting, gambling, and horse racing.

The petitioner submitted that the Sikkim High Court in the same case has stayed the GST demand against casino and online gaming company Delta Corp.

The department contended that it would not pass any final orders on show cause notice without the court’s permission.

The court stated, “This statement about not passing any final orders on the impugned show cause notice is accepted and the concerned respondents will have to abide by the same,” the court said.”

Counsel For Petitioner: Harish Salve

Counsel For Respondent: P. Faldessai

Case Title: Delta Corp Limited & Anr. Versus Union Of India & Ors.

Case No.: W.P. (C) No. 715 of 2023

Click Here To Read The Order