Case Law Details
Probo Media Technologies Private Limited Vs Union of India (Punjab and Haryana High Court)
Introduction: In the case of Probo Media Technologies Private Limited Vs Union of India, the Punjab & Haryana High Court directed a partial defreezing of funds for an online betting application facing a GST notice of Rs. 1500 crores. The decision echoes the precedent set in a previous case, Witzeal Technologies Pvt Ltd. vs. Union of India and Ors., amidst ongoing investigations about GST applicability on skill games facilitated by the petitioner’s platform.
Analysis: The petitioner’s counsel pointed out that no clarification has been given by the Group of Ministers about whether the skill games, facilitated by the platform, should be charged as a game of chance at 28% on the entire bet value. They also asserted that they have already paid 18% GST on platform fees. The counsel also contested that they had paid 18% GST on a total turnover of Rs.86 crore over two years, while the amount attached was Rs.97.95 crore. The court, in keeping with an earlier ruling, decided to defreeze 50% of the attached amount and ordered that no coercive steps be taken for the recovery of the amount demanded, allowing the petitioner company to continue day-to-day operations.
Conclusion: The Punjab & Haryana High Court’s decision in Probo Media Technologies Private Limited Vs Union of India reflects an interim measure to ensure business continuity amid ongoing investigations. It emphasizes the need for clear regulatory guidelines concerning the application of GST to online platforms, particularly those facilitating skill games.
FULL TEXT OF THE JUDGMENT/ORDER OF PUNJAB AND HARYANA HIGH COURT
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