The Calcutta High Court today heard the writ challenge by Delta Gaming against the show cause notice issued by the GST Department involving a tax claim of over INR 6000 crores. 

The lawyer representing Delta Gaming submitted that various High Courts have admitted similar writ petitions and have granted interim orders. The petitioner referred to the orders of Gujarat High Court, Bombay High Court (Goa Bench) where the parent of Delta Gaming is the writ petitioner and the Sikkim High Court.

Additional Solicitor General N Venkatraman appearing for the tax department and the central government has contended that he is not position to deny the fact that various High Courts have admitted similar petitions and granted interim relief.

The bench relying on the recent decisions of the above referred High Courts has granted interim relief. The bench directed the gaming company to file reply to show cause notice issued by the GST department in 8 weeks from today.

In a deviation from orders of the High Courts, the bench permitted the tax authority to consider the reply filed and pass an order without giving effect to the order. The other High Courts in similar matters have directed the companies to file replies to show cause notices but restrained the tax department from passing orders.

The bench directed the gaming company to amend the prayer to also include the challenge to the corresponding section of the West Bengal GST Act. The matter will now be listed for a final hearing in March 2024.

ASG Venkataraman appearing for the tax department has informed the High Court that the government will soon approach the Supreme Court for clubbing similar tax matters pending at various High Courts. He also argued in favour of permitting the department to pass an order upon receipt of the reply.