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BANGALORE TURF CLUB LIMITED – Appellant
Versus
THE STATE OF KARNATAKA – Respondent
WP 11168/2018
1
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 02ND DAY OF JUNE, 2021
BEFORE
THE HON'BLE MR. JUSTICE M. NAGAPRASANNA
WRIT PETITION No.11168/2018 (T – RES)
C/W
WRIT PETITION No.11167/2018 (T – RES)
IN WRIT PETITION No.11168/2018
BETWEEN
BANGALORE TURF CLUB LIMITED
GSTIN 29AABCB6217G1ZT
RACE COURSE ROAD,
BENGALURU - 560 001.
REPRESENTED BY ITS SECRETARY
AND CFO SRI PRADEEP KUMAR,
AGED ABOUT 41 YEARS,
S/O SRI GUNDERAO KULKARNI,
RESIDING AT FF6, SURYA PARK VIEW APARTMENTS,
17TH CROSS, IDEAL HOMES TOWNSHIP,
RAJARAJESHWARI NAGAR,
BENGALURU - 560 098.
... PETITIONER
(BY SRI VIVEK REDDY K., SENIOR COUNSEL FOR
SRI ATUL K. ALUR, ADVOCATES (VIDEO
CONFERENCING))
AND
1.
THE STATE OF KARNATAKA
REPRESENTED BY
R
2
THE PRINCIPAL SECRETARY
FINANCE DEPARTMENT,
GOVERNMENT OF KARNATAKA,
BENGALURU - 560 001.
2.
THE UNION OF INDIA
REPRESENTED HEREIN
BY THE SECRETARY,
GOVERNMENT OF INDIA,
NEW DELHI - 110 006.
3.
ASST. COMMISSIONER OF CENTRAL TAX
BENGALURU NORTH DIVISION,
CRESCENT ROAD,
BENGALURU - 560 001.
... RESPONDENTS
(BY SRI VIKRAM HUILGOL, AGA FOR R1 (VIDEO
CONFERENCING);
SMT.M.R.VANAJA, CGSC FOR R2 AND R3 (VIDEO
CONFERENCING))
THIS WRIT PETITION IS FILED UNDER ARTICLE 226
OF THE CONSTITUTION OF INDIA PRAYING TO DECLARE
THAT THE PETITIONER, BASED ON THE LEGISLATIVE
INTENT
IS
LIABLE
TO
PAY
GST
ONLY
ON
THE
COMMISSION SET APART AND THEREFORE, DECLARE
THAT THE CLARIFICATION / CIRCULAR DATED 04.01.2018
AT ANNEX-A ARE UNSUSTAINABLE AND BE QUASHED
AND ETC.,
IN WRIT PETITION No.11167/2018
BETWEEN
MYSORE RACE CLUB LIMITED
GSTIN 29AABCM5167G1ZB
RACE COURSE ROAD,
3
MYSURU - 570 010
REPRESENTED BY ITS
SECRETARY SRI K.G. ANANTHARAJ URS
AGED ABOUT 66 YEARS,
SON OF LATE G.GOPALARAJ URS
RESIDING AT 190, NYAYA MARG,
SIDDHARTH NAGAR,
MYSURU - 570 011.
... PETITIONER
(BY SRI VIVEK REDDY K., SENIOR COUNSEL FOR
SRI ATUL K. ALUR, ADVOCATES (VIDEO
CONFERENCING))
AND
1.
THE STATE OF KARNATAKA
REPRESENTED BY
THE PRINCIPAL SECRETARY
FINANCE DEPARTMENT
GOVERNMENT OF KARNATAKA
BENGALURU – 560 001.
2.
THE UNION OF INDIA
REPRESENTED HEREIN
BY THE SECRETARY,
GOVERNMENT OF INDIA,
NEW DELHI - 110 006.
3.
ASST. COMMISSIONER OF CENTRAL TAX
ITTIGEGUD, SIDDHARTHNAGAR DIVISION,
MYSURU – 570 010.
... RESPONDENTS
(BY SRI VIKRAM HUILGOL, AGA FOR R1 (VIDEO
CONFERENCING);
SMT.M.R.VANAJA, CGSC FOR R2 AND R3 (VIDEO
CONFERENCING))
4
THIS WRIT PETITION IS FILED UNDER ARTICLES 226
AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO
DECLARE THAT THE PETITIONER, BASED ON THE
LEGISLATIVE INTENT IS LIABLE TO PAY GST ONLY ON
THE
COMMISSION
SET
APART
AND
THEREFORE,
DECLARE
THAT
THE
CLARIFICATION
/
CIRCULAR
NO.27/01/2018-GST
DATED
4TH
JANUARY
2018
ANNEXURE-A ARE UNSUSTAINABLE AND BE QUASHED
AND ETC.,
THESE WRIT PETITIONS HAVING BEEN HEARD AND
RESERVED FOR ORDERS ON 26.02.2021, COMING ON
FOR PRONOUNCEMENT THIS DAY, THE COURT MADE THE
FOLLOWING :-
ORDER
The petitioners in these writ petitions inter alia
challenge the legislative intent of making the petitioners
liable to pay Goods and Services Tax (‘GST’ for short) on
the entire bet amount received by the totalisator and
declare the amendments dated 25-01-2018 which
inserted Rule 31A(3) to the CGST Rules as being ultra
vires the CGST Act.
2. Adumbrated in brief, the factual background as
projected by the petitioners are as follows:
5
The petitioners, are Companies incorporated
under the Companies Act as a Public Limited Company
are carrying on the business of a race club, which
includes lay-out and preparing any land for running of
horse races, steeplechases of races of any other kind
and for any kind of athletic sports. The petitioners
particularly conduct horse racing and facilitates betting
by the punters. The petitioners by themselves do not
bet, but only facilitates punters in their
