Shares of Delta Corp surged over 5 per cent on October 25, as the Bombay High Court issued an order preventing tax authorities from making a conclusive decision regarding the Rs 16,195 crore GST notice served to the casino company.
The order was issued by the Goa branch of the Bombay HC instructing the Directorate General of GST Intelligence in Hyderabad not to make any final determinations regarding the tax notice without obtaining prior permission from the court.
At 10:30 am, the shares of the casino firm were trading at Rs 135 price level, up by over 4 per cent or 5 points on the National Stock Exchange.
Since the GST Council's approval of a 28 per cent tax on online gaming, casinos, and horse racing, the company's shares have been under pressure. The company and its two subsidiaries have filed writ petitions against a notice dated September 27. "Basis a statement made on behalf of the concerned tax authorities, the Hon’ble High Court has directed such authorities not to pass any final orders on the captioned show cause notices without the prior permission of the Hon’ble High Court. Dates have been fixed for completion of pleadings, and the hearing and final disposal of such writ petitions," said Delta Corp in a stock exchange filing.
Delta Corp manages casinos and also has a presence in the online gaming sector through its subsidiary, Deltatech Gaming. On October 20, the Sikkim High Court ordered a maintenance of the current state of affairs until the forthcoming hearing, which is scheduled for February 5, 2024.