Gameskraft case: Tax department assures no coercive action

BENGALURU:  The Karnataka High Court has scheduled October 11 for the next hearing in the case of unicorn start-up Gameskraft plea. It filed a plea on September 26 against the show cause notice issued by the Directorate General of GST Intelligence (DCGI) despite the High Court’s stay on Rs 21,000 crore tax notice issued to the firm.

Justice SR Krishna Kumar expressed his inability to take up the matter given the heavy docket burden, and said that he will list for hearing post the Dusshera holidays. During the hearing, the gaming start-up asked the court for stay, which was objected by Additional Solicitor General (ASG) N Venkataraman, who was appearing for the GST authorities.

When the court pointed out that Gameskraft’s is apprehensive of coercive actions such as attachment by the GST department in the interim, the ASG said that such apprehension is ill-founded since 30 days have been given under the SCN for the company to respond to. The ASG also assured the court that no action will be taken without hearing the petitioners (Gameskraft).

On the basis of assurances given by the ASG, the Court adjourned the matter to be heard on 11th October 2022 for interim stay.