The High Court of Bombay at Goa directed casino companies to record their objections and join the adjudication process in the GST matter.
Casino companies approached the HC challenging showcase notices issued by the Directorate of Revenue Intelligence demanding GST to the tune of Rs. 11,139 crore for the period from July 2017 to March 2022, along with interest and penalty which can exceed Rs.22,250 crore.
The show-case notice dated September 27, 2023 states that the companies have been non-complaint in discharging GST on the total bet value calculated, and instead have been discharging GST on consideration actually received by it.
The HC directed revenue intelligence to furnish the investigation report to the casino companies within two weeks.
The casino companies had alleged that there is no separate investigation report and that the investigation report is in fact the show cause notices issued to them.
Even if the investigating report is not furnished, the casino companies cannot delay or avoid adjudication proceedings, the HC clarified.
“By recording their objection, the petitioners must join the adjudication process and not delay the same.” the court stated.
The HC observed that the reasons for engaging the Indian Statistical Institute (ISI) were clearly disclosed to the casino companies, but they still insist they be informed for the reasons for engaging ISI.
“If such an investigation report contains sensitive information regarding the identify of the sources or regarding third parties and unrelated transactions, respondents can always furnish such investigation reports to the petitioners by redacting such portions and such information. However, a blanket refusal to furnish an investigation report would not be proper,” HC.
Source: The Times of India
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