No final order on GST to gaming firm without HC approval

The Bombay High Court's Goa Bench has instructed tax authorities to refrain from making any final decisions regarding the GST notices requesting payment of a claimed tax deficit served to Delta Corp Limited, a casino gaming company.

Additionally, the court has notified the Central government about Delta Corp's challenge against a particular provision of the Central Goods and Services Tax Act through their plea against the aforementioned notices.

According to official documents, in September, Delta Corp and its subsidiaries received notices demanding the payment of a supposed tax shortfall amounting to Rs 16,822 crore from the Directorate General of GST Intelligence in Hyderabad. This tax shortfall supposedly occurred between July 2017 and March 2022.

 

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The recent development in the case of Delta Corp Limited, a prominent casino gaming company, has seen the Bombay High Court's Goa Bench intervening to prevent tax authorities from making any final decisions on the GST notices issued to the company. This instruction from the court essentially puts a hold on any further action until the matter is properly heard and reviewed.

Furthermore, the court has also informed the Central government about Delta Corp's challenge against a particular provision of the Central Goods and Services Tax Act, which is the basis of their plea against the notices. By bringing this challenge to the government's attention, Delta Corp aims to have the provision in question examined, potentially leading to its amendment or revocation.

The dispute revolves around the alleged tax deficit amounting to Rs 16,822 crore that the Directorate General of GST Intelligence in Hyderabad has demanded from Delta Corp and its subsidiaries. According to the notices, this tax shortfall is said to have occurred between July 2017 and March 2022.

It is important to note that until the matter is resolved through a proper legal process, the company is not obligated to make any payments based on the notices it has received. The court's intervention serves to protect Delta Corp's rights and ensure that there is a fair and thorough examination of the situation before any final determination is made.

Overall, this case highlights the complexities and potential challenges faced by businesses in navigating the tax regulations under the Goods and Services Tax (GST) system in India. The outcome of this legal battle will be closely monitored, as it could have implications for how similar cases are handled in the future.