The Punjab And Haryana High Court in the case Probo Media Technologies Versus Union of India observed and has impeded coercive actions against the online opinion betting app, Probo Media Technologies, with regards to the GST Notice demanding Rs. 1500 crore.
The bench comprising of Justice Ritu Bahri and Justice Manisha Batra in the case observed and has asked that no coercive steps for the recovery of the amount demanded in the show cause notice shall be taken and the bench in the case ordered that 50% of the amount is to be released which is present in the attached account.
In the present case, the petitioner company being an online intermediary or marketplace that owns and manages a mobile gaming application as well as the web-based gaming portal named ‘Probo’. Thus, it in the case facilitates the adult players to trade of their skill, knowledge, their experience, or analysis-based opinions on sporting and non-sporting events with other users or players and charges the service fee for such facilitation of services.
Therefore, the Haryana GST Intelligence also issued the show cause notice under Section 74 of the Act on Goods and Services Tax which amounts to INR 15,00,89,32,218 along with interest and penalty under the provisions of the Goods And Service Tax, Act. Thus, the bank account of company was provisionally attached and frozen.
The petitioner in the plea also relied on the judgment passed by the Punjab and Haryana High Court in the case of Witzeal Technologies Pvt. Ltd. vs. Union of India and Ors, wherein the court disposed matter and the court would take necessary steps only when clarification came.
It has also been contended by the petitioner in the case that to date no clarification has been given by the Group of Ministers, wherein the issue is examined on the question of whether the skill games that are being facilitated by the petitioner in the plea are to be charged as a game of chance at 28% on the entire bet value.
It has also been stated by the petitioner in the plea that no platform fees, they have already paid 18% GST.
Accordingly, the court directed that no coercive actions must be taken, while taking into account a previous order in which the state government had suffered a statement that clarification on taxation being a pending decision with the empowered group of ministers.
The counsel, Advocate Tarun Gulati, Advocate Rana Gurtej Singh, Advocate Sudipta Bhattacharjee appeared for the petitioner.
The counsel, Advocate Rishabh Kapoor represented the respondent
