A recent legal case, initiated under Article 226 of the Constitution of India, has generated considerable controversy regarding the imposition of taxation on wagering and betting activities under the Central Goods and Services Tax Act, 2017 (CGST Act). The petition challenges the constitutionality of Section 15(5) of the CGST Act and related regulations, in addition to contesting the jurisdiction of several provisions and seeking interim relief.
In light of this petition, a bench composed of Justices Jitendra Jain and G. S. Kulkarni duly acknowledged the situation and issued a directive to the Attorney General. The petitioner lodged a comprehensive plea, which encompassed several demands. Notably, it aimed to have a show cause notice quashed, specific sections of the CGST Act and Rules challenged, and the legislative authority to levy tax on wagering and gambling under Article 246-A of the Constitution contested.
The petitioner's counsel drew attention to the parallels in challenging provisions, referenced in prior cases such as NGXN Sports Interactive Private Limited v. Union of India and Delta Corp Limited v. Union of India, despite differences in the activities of the assessees engaged. The court had, in these cases, ordered the status quo to be maintained about the show-cause notices and granted interim relief, respectively.
Recognizing the precedents established by these cases, the Court resolved to issue a notice to the Attorney General and direct the petitioners to respond to the show cause notices in a similar fashion. Furthermore, the Court maintained the petitioners' opportunity to apply consolidation of cases so that they could be heard by the relevant Division Bench.
The forthcoming hearing of the case on January 17, 2024, signifies the dynamic nature of legal discussions about the taxation of wagering and betting in India. This advancement highlights the importance of judicial interpretation and constitutional scrutiny in influencing tax legislation within the nation.
This present case exemplifies the convergence of legislative authority, constitutional mandates, and judicial supervision, thus illustrating the ever-changing landscape of Indian legislation and the progressive standards of taxation, particularly in delicate sectors such as wagering and gambling.
