The Sikkim High Court in the case Delta Corp Limited & Anr. Versus Union Of India & Ors observed and has stayed the GST demand against casino and online gaming company Delta Corp.
The bench headed by Justice Bhaskar Raj Pradhan in the case observed and has mandated that the department and respondents maintain the status quo regarding the show cause notice. Thus, this means no coercive or precipitous action should be taken against Delta Corp. in the interim.
The court observed that in addition to contesting several other circulars, clarifications, and rate notifications issued by the Central Board of Indirect Taxes and Customs, CBIC. It has also been challenged by the petitioner or assessee that the Delta Corp., had 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.
Therefore, the Rule 31A relates to the value of supply in the case of the lottery, betting, gambling, and horse racing. The court in the case observed and has issued the notice to all the parties on the interim application and asked the Union of India, DGGI, State of Sikkim, and GST Council, among other respondents, to file their reply with the period of two weeks. Accordingly, the court listed the matter for further consideration on December 5, 2023.
The counsel, Advocate Harish Salve appeared for the petitioner. The counsel, Advocate Sangita Pradhan represented the respondent.