Despite the Karnataka High Court’s order staying a notice to the Gameskraft, the GST department has issued a demand notice for Rs. 21,000 Crores.
Earlier, Gameskraft was issued an intimation notice from the GST authorities on September 8 raising a demand of ₹21,000 crore, which was challenged before the High Court.
Justice SR Krishna Kumar had on September 23rd stayed this notice, observing that there were several contentious issues in the case. “If the same is not stayed, the petition would be rendered infructuous and as such, I deem it just and appropriate to stay the impugned Intimation pending disposal of this petition”, the single-judge had stated. However, the online gaming company claims that despite this stay order, the authorities illegally, contemptuously and maliciously issued the show cause notice on the very same day as the High Court’s order.
The petitioner argued that the allegations in the GST authorities’ show-cause notice were exactly the same as those in the intimation notice which had already been stayed.
The hearings before the High Court saw ASG Venkataraman making unyielding submissions on behalf of the GST authorities. The vehemence of the ASG’s arguments prompted Justice Kumar to question whether ‘Big Brother’ was watching over the case. Initially, the ASG gave the Court an assurance that no coercive action would be taken on the notice issued to Gameskraft. However, on the next date of hearing, he said that he had no control on that aspect
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