Case Law Details
Myteam11 Fantasy Sports Private Limited Vs Union of India (Rajasthan High Court)
The petitioners have been served with a show cause notice under Section 74(1) of the Central Goods & Services Tax, 2017(for short ‘CGST, 2017’) alleging that the petitioner-Company by misclassifying their supply as service instead of actionable claims which are goods and by undertaking activities in the form of betting has avoided tax and as such why the demands of GST, interest thereon and penalty as referred to in the notice may not be confirmed.
The petitioners through the present writ petition has thrown a challenge to the above show cause notice contending that the issue as to whether nature of gaming services as provided by it is in the nature of services or an actionable claim is no longer res-integra and has been decided by catena of the authorities which hold that the said games are game of skill and would not be covered as gaming of chance or gambling.
Some of the games offered by the petitioners online have already been held to be games of skill rather than that of chance or that of betting/gambling. Thus when the matter is so settled by various Courts, the issuance of the impugned show cause notice is nothing but an abuse of the process of law.
Accordingly, we call upon the respondents to file counter affidavit to the writ petition within a period of one month from today.
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