The Gujarat High Court in the case NXGN Sports Interactive Private Limited Versus Union Of India observed wherein the court was deciding the issue of whether fantasy gaming falls within an actionable claim which amounts to betting and gambling or based on skills.
The bench comprising of Justice Biren Vaishnav and Justice Mauna M. Bhatt in the case observed and has issued the notice to the GST department and the court restrained the GST department from taking any further steps on the adjudication of the show cause notice.
The petitioner or assessee, NXGN Sports Interactive, submitted before the court that the activity of the online claimed that the petitioners undertake would be an actionable claim other than that of lottery, betting, and gambling.
The petitioner in the plea challenged that the show cause notice which is been issued by the GST department. Thus, the petitioner raised the issue as to whether the petitioners’ platform, which is used for gaming, would fall within an actionable claim amounting to betting and gambling.
The court in the case observed that as per section 2(52) of the GST Act read with Section 7, particularly Schedule (III), activities or transactions shall be treated neither as a supply of goods nor the supply of services and the actionable claims other than the lottery, betting, and gambling.
Further, the petitioner in the plea contended that it is not an actionable claim that is sought to be conveyed in the show cause notice issued.
The court while considering the facts and circumstances of the case stated that there shall be ad-interim relief inasmuch as the respondents are restrained from taking any further steps on the adjudication of the show cause notice. However, the court stated that it shall be open to the petitioner to file a response to the show cause notice.
Therefore, the notice issued by the court returnable on January 17, 2024.
The counsel, Advocate Mihir Joshi appeared for the petitioner.
The counsel, Advocate Tushar Hemani represented the respondent.