Sikkim High Court Stays GST Show Cause Notice Against Casino And Online Gaming Company, Delta Corp.

The Sikkim High Court has stayed the GST demand against casino and online gaming company Delta Corp.

The bench of Justice Bhaskar Raj Pradhan has mandated that the department and respondents maintain the status quo regarding the show cause notice. This means that no coercive or precipitous action should be taken against Delta Corp. in the interim. A hearing on the subject has been scheduled for December 5, 2023.

In addition to contesting several other circulars, clarifications, and rate notifications issued by the Central Board of Indirect Taxes and Customs (CBIC), the petitioner/assessee, Delta Corp., had also 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.

Rule 31A relates to the value of supply in the case of the lottery, betting, gambling, and horse racing.

The court issued notice to all parties on the interim application and asked the Union of India, DGGI, State of Sikkim, and GST Council, among other respondents, to file their replies within two weeks.

Counsel For Petitioner: Harish Salve

Counsel For Respondent: Sangita Pradhan

Case Title: Delta Corp Limited & Anr. Versus Union Of India & Ors.

Case No.: W.P. (C) No. 41 of 2023

Click Here To Read The Order