PANJIM: Two off-shore casino operators have challenged in the Bombay High Court at Goa, the GST demand amounting to crores of rupees raised by the Directorate General of GST Intelligence from July 2017 to March 2022.
Delta Corp Limited and another have filed a writ petition challenging that the GST was to the vires of Rules 31 A of the CGST Rules, 2017. They have also challenged that show cause notice dated September 27, 2023, which according to them, is based mainly on Rule 31 of the CGST Rules, 2017. They have also further challenged the Section 15 (5) of the CGST Act and certain notifications and circulars issued under the CGST Act and Rules.
Arguing on the petitioners senior counsel Harish Salve placed on record an order dated October 20, 2013 passed by the High Court of Sikkim admitting a writ petition involving a similar challenge in the case of Delta Corp Limited and another v/s Union of India and others wherein the Sikkim High Court has ordered status quo to Rs 628 crore GST demand until the date of next hearing.
The High Court then issued notices to all respondents including the Attorney General of India since the petitioners have challenged the section 15 (5) of the CGST Act.
The Court also asked one of the respondents not to pass any final orders on the impugned show cause notice without leave of the court. Senior counsel Salve stated that the petitioners will file a response to the impugned show cause notice.
The Court has now kept the matter for final disposal on February 5, 2024.