The Calcutta High Court on Thursday (November 30) granted interim protection to Delta Corp, a leading casino and online gaming company, in response to a ₹6,000 crore show cause notice (SCN) issued by the Directorate General of GST Intelligence, Kolkata, according to a report by Taxsutra.
Additional Solicitor General (ASG) Venkataraman stepped forward to defend the constitutionality of the actions against Delta Corp, the report said.
The company had been facing demands for payment related to the shortfall in taxes spanning from January 2018 to November 2022, and a separate sum for the period between July 2017 and October 2022.
This legal reprieve comes as a major relief for Delta Corp, as the
Calcutta High Court has put a halt on the show cause notice, providing the company with temporary respite amid the ongoing legal battle. The move mirrors a similar decision by the Sikkim High Court, which had previously granted a stay on a
₹628 crore GST demand order against Delta Corp.
The
Directorate General of GST Intelligence in Hyderabad had issued three demand notices on September 22, citing a shortfall in tax payments by Delta Corp Limited. Among the demands, a notable sum of over
₹628 crore was linked to the Casino Deltin Denzong, situated in Sikkim.
In response to the legal proceedings, Delta Corp informed the stock exchanges on October 14 that its subsidiary, Deltatech Gaming Limited, had received intimation from the Directorate General of GST Intelligence, Kolkata.
The communication specified a payment demand of ₹6,236.81 crore for the tax shortfall covering the period between January 2018 and November 2022, along with an additional ₹147.51 crore for the period from July 2017 to October 2022.
The shares of the company ended 9% higher in the session on Thursday. The stock has fallen over 32% in 2023 so far.
