Delta Corp soars over 8% as Bombay HC restrains GST tax notice for firm

livemint.com:

Delta Corp surged over 8 percent on Wednesday after the Bombay High Court restrained tax authorities from passing any final order on the ₹16,195-crore GST notice issued to the Casino operator. The order was passed by the Goa Bench of Bombay High Court. The stock surged as much as 8.2 percent to its day's high of ₹140.70.

The stock has already shed over 42 percent in the last 1 year and 36 percent in 2023 YTD. It also lost over 21 percent in September after the Directorate General of GST Intelligence, Hyderabad sent notice of GST shortfall to the firm. "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," Delta Corp told stock exchanges. On September 22, Delta had disclosed demands for payments received for shortfall of tax from the Directorate General of GST Intelligence, Hyderabad. As per the demand, notices were sent to Delta Corp and its subsidiaries as follows - Delta Corp: close to ₹11,140 crore; subsidiary Highstreet Cruises and Entertainment: near ₹3,290 crore; and subsidiary Delta Pleasure Cruise Company: about ₹1,766 crore.

On September 25, Delta Corp received a notice for a tax shortfall of ₹11,140 crore, whereas, its subsidiaries were issued notices for an amount totalling ₹5,682 crore. The alleged shortfall in the payment of tax pertained to the period between July 2017 and March 2022. Delta Corp also received fresh notices of alleged shortfall in the payment of GST to the tune of ₹6,384 crore, as per a regulatory