Kolkata HC provides interim relief to Delta Corp in Rs. 6,000 crore GST Demand Case

Kolkata High Court grants Delta Corp reprieve, delaying Rs 6,000 crore GST claim show cause notice.

The show cause notice related to the Rs 6,000 crore GST claim has been delayed, owing to the Calcutta High Court’s crucial decision to award Delta Corp interim protection. Delta Corp must reply to the Department’s show cause notice within eight weeks, according to the court’s ruling.

Assistant Solicitor General N. Venkataraman supported the constitutionality of the pertinent sections by citing rulings from the Supreme Court in the cases of V.K.C. Footwear & Mohit Minerals. A final hearing for the matter is set for March 2024.

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The well-known casino operator Delta Corp revealed on October 14 that Deltatech Gaming, a division of Delta Corp, had been notified of an outstanding tax payment of Rs 6,384 crore. In sharp contrast to its market valuation of Rs 3,749 crore, Delta Corp’s overall tax deficit liability has increased with this most recent tax notice, reaching Rs 23,206 crore.

The Directorate General of GST Intelligence sent the firm tax letters in late September 2023 totaling Rs 16,822 crore for the months of July 2017 through March 2022. Delta Corp was sent one notice, worth Rs 11,140 crore, while its subsidiaries, Casino Deltin Denzong, Highstreet Cruises, and Delta Pleasure Cruises, were sent another, for Rs 5,682 crore.

Deltatech Gaming Limited is required by the GST notice to pay the purported tax shortfall, interest and penalties included. A show-cause notice may be issued in accordance with Section 74(1) of the CGST Act, 2017 in the event of noncompliance.