GURDEEP SINGH SACHAR Vs. UNION OF INDIA

JUDGEMENT

(1.) Rule. Rule is made returnable forthwith and, by consent, the matter is heard finally.

(2.) Heard Dr. Kantawala, learned counsel for the petitioner and Mr.Nankani, learned senior counsel for the respondent No.3.

(3.) The petitioner claims himself as a public spirited advocate practising in this High Court, and seeks directions to initiate criminal prosecution against the respondent No.3- a Company named "Dream 11 Fantasy Pvt. Ltd.", firstly for allegedly conducting illegal operations of gambling/betting/wagering in the guise of Online Fanstasy Sports Gaming, which as per the petitioner shall attract penal provisions of Public Gambling Act, 1867, and secondly for alleged evasion of Goods & Service Tax (GST) payable by it by violating the provisions of Goods and Service Tax Act and the Rule 31A of CGST Rules, 2018. 3. The petitioner has placed on record a copy of the print-out taken from the web-site of respondent No.3 for giving the details and manner of selecting virtual teams and playing free or paid online fantasy games on internet on the web-site of the respondent No.3. It is the case of the petitioner that players can create different virtual teams for playing fantasy games. Admittedly, for understanding and getting a know-how of the game, option to play for free is also available on the website. He, however, claims that the fantasy games are such that after some time people tend to pay with their hard earned money, instead of playing for free. According to him, these fantasy games are nothing but means to lure people to spend their money for quick earning by taking a chance, and most of then end up losing their money in the process, which is thus gambling/betting/wagering, being different forms of "gambling". According to his belief, a fantasy game of this nature is merely a game of chance or luck, which is totally dependent upon the luck of a player on a particular day. He further claims that upon entering in various contests and putting alleging bet money in them, the player receives a tax invoice in which tax is being charged only on the amount received and retained by respondent No.3 towards platform fee say 20%, and not on the entire money which is put a stake by the player. For the balance 80% amount only "acknowledgement" is given. Admittedly, this "acknowledgement" amount collected from each player is pooled in as Escrow Account and their contribution ultimately gets distributed amongst the players themselves as price money immediately upon conclusion of game, as a result of which, some players get more than their contribution, and some lose money. According to the petitioner, since these activities are nothing but 'gambling' or 'betting' even if this acknowledgement amount is separately kept in an Escrow account and not retained by the respondent No.3, GST would be payable even on this amount. However, since GST is not being paid on this "acknowledgement" amount by the respondent No.3 and since the activities such as those being conducted by the respondent No.3, are nothing but 'betting' or 'gambling', the same according to the petitioner shall be governed by Rule 31A(3) of CGST Rules, 2018. According to him, like horse racing the said Rule shall apply even ins such fantasy games amounting to gambling and/or betting and/or wagering, and thus GST shall be payable on 100% amount collected by the respondent No.3, which shall be under proper classification so as to pay Tax @ 28% instead of @18%. The petitioner in effect submits that the activities of the respondent No.3 is nothing but 'gambling'/'betting', and for promoting gambling/betting and for evading payment of CGST/IGST, suitable action shall be taken for criminal prosecution of the said respondent No.3.