Supreme Court Directs FanMade11, 9Stacks To Pursue GST Appeal Instead Of Writ Petitions

The Supreme Court has disposed of writ petitions filed by two online gaming companies, FanMade11 Fantasy Sports Private Limited and 9Stacks, challenging GST proceedings against them.

A bench of Justice J.B. Pardiwala and Justice K. Vinod Chandran heard both pleas.

The court directed both companies to pursue the statutory remedies available under the GST law instead of invoking its writ jurisdiction.

In the matter involving 9Stacks, the court held that since a final assessment order had already been passed, the company must avail itself of the statutory appellate remedy under the GST law.

It also clarified that all contentions, including those relating to revaluation and pre-deposit, may be raised before the appellate authority.

Senior Advocate Dr. S. Muralidhar, appearing for 9Stacks, submitted that despite an interim order of the Supreme Court directing that no coercive steps be taken against the company, the assessing officer proceeded with the adjudication.

He said the officer subsequently passed a final assessment order raising a GST demand of ₹6.3 crore.

Taking note of the subsequent assessment order, the bench held that the appropriate course for the petitioner was to file a statutory appeal.

The court granted the company four weeks to file the appeal. It also observed that the petitioner would be free to raise all contentions available in law, including those relating to revaluation and pre-deposit, before the appellate authority.

In the petition filed by FanMade11 Fantasy Sports Private Limited, the Supreme Court declined to examine the challenge to the GST show cause notice. It did so in view of its recent decision in Directorate General of Goods and Services Tax Intelligence (HQs) & Ors. v. Gameskraft Technologies Private Limited & Ors.

The court held that the company must first appear before the assessing officer. If aggrieved by any final assessment order, it may then avail the statutory appellate remedy under the GST Act.

The writ petitions were accordingly disposed of.

For Petitioner: Senior Advocate Dr. S. Muralidhar, assisted by Kumar Visalaksh, Udit Jain, Jay Sayta, Pranav Bansal, Vibhor Sharma, Vishnu Kant, AOR, Ninni Susan Thomas, Lalitendra Gulani, Niti Khana, Mohit Pugalia, Tanuj Kumar, Sneha Ghosh, Gayatri Shrivastav, M. Sarada and Rajeev Gulani, AOR.