In CWP-11446-2023 -P&H HC- Punjab and Haryana High Court grants relief to Probo Media Technologies, orders defreezing of 50% of attached amount in skill games tax dispute
Justice Ritu Bahri & Justice Manisha Batra [25-05-2023]

Read Order: Probo Media Technologies Private Limited V. Union of India and Others

Chahat Varma

Chandigarh, June 28, 2023: The High Court of Punjab and Haryana has ruled in favour of Probo Media Technologies Private Limited (petitioner), a company engaged in facilitating skill games, stating that no coercive steps would be taken for the recovery of the amount demanded as per the show cause notice issued on 19.05.2023 and the court ordered the defreezing of 50% of the attached amount, allowing the petitioner to resume its day-to-day working.

The court's decision came in light of a previous order passed in the case of Witzeal Technologies Pvt. Ltd. vs. Union of India and Ors. [LQ/PunjHC/2021/14850], dated 20.09.2021, where the State counsel had assured that an empowered Group of Ministers were investigating the taxation issue related to skill games and they would take necessary steps when the clarification comes.

The crux of the matter revolved around the question of whether skill games facilitated by the petitioner should be treated as games of chance subject to a 28% tax on the entire bet value. The petitioner's counsel highlighted the lack of clarification from the Group of Ministers on this matter. Additionally, it was mentioned that the petitioner had already paid GST at a rate of 18% on platform fees.

In view of the assurance given by the State counsel in the order dated 29.09.2021 that no coercive steps would be taken against the petitioner, the court gave relief to the petitioner and decided to adjourn the matter to 17.08.2023.