Delta Corp Ltd. V/s Union of India {HIGH COURT OF BOMBAY}
Delta Corp Ltd. V/s Union of India {HIGH COURT OF BOMBAY} :
Date of Order : 23-10-2023
In the case of Delta Corp Ltd. v. Union of India, the Bombay High Court addressed challenges related to GST on lottery, betting, gambling, and horse riding activities. Here’s a simplified explanation of the key points and rulings:
- Challenges Raised:
- Show Cause Notice: Delta Corp Ltd. challenged a show cause notice dated 27th September 2023, which was primarily based on Rule 31A of the CGST Rules, 2017. This rule pertains to taxation on lottery, betting, gambling, and horse riding activities under GST.
- Section 15(5) of CGST Act: The petitioner also challenged Section 15(5) of the Central Goods and Services Tax Act, 2017, along with certain notifications and circulars issued under this Act.
- High Court Proceedings:
- Notice Issued to Attorney General: Due to the challenge against Section 15(5) of the CGST Act, the High Court issued a notice to the Attorney General of India for consideration of the constitutional validity of the section.
- Listing for Final Disposal: The matter was listed for final disposal after issuing the notice to the Attorney General. This indicates that the High Court will hear arguments on the validity of the provisions challenged by Delta Corp Ltd.
- Stay on Final Orders: The respondents, represented by the Deputy Solicitor General of India and the Advocate General, agreed not to pass any final orders on the show cause notice until the court provides further instructions or rulings.
- Implications:
- The case highlights the legal challenges surrounding the taxation of lottery, betting, gambling, and horse riding activities under GST, as well as broader issues related to the interpretation and application of Section 15(5) of the CGST Act.
- Issuing a notice to the Attorney General signifies the importance of addressing constitutional aspects of the legal provisions in question, ensuring a thorough examination of the challenges raised by Delta Corp Ltd.
- The decision to list the matter for final disposal sets the stage for a comprehensive judicial review and potential resolution of the disputes related to GST taxation on these specific activities.
In summary, the Bombay High Court’s decision in Delta Corp Ltd. v. Union of India marks a significant step in clarifying the legal framework and challenges concerning GST applicability to lottery, betting, gambling, and horse riding activities, emphasizing judicial scrutiny and the protection of legal rights under GST laws.
