GST on Lotteries ---– The Appellant engaged in the business of purchase and sale of lottery tickets run, conducted and organized by the Government of Sikkim both within the State of Sikkim as well as outside the State, also sells lottery tickets in the States of Sikkim, Punjab, Goa and Maharashtra. It is pleaded that the “lotteries which is being run by the State Government of Sikkim, is not a lottery authorized by the State Government requiring to discharge GST under a higher rate of taxation of 28%. The Appellants challenged Notification No.01/2017 dated 30th June, 2017 issued by the Government of Goa levying tax @ 14% on Lottery authorized by State Governments. The court observed that the question that arises for a decision on these appeals is, whether the High Court was justified in returning the finding that “at least a part of the cause of action has arisen within the jurisdiction of this Court” and premised on such a finding, to dismiss the applications. The Appellant contended that the cause of action has arisen in Sikkim only, meaning thereby the whole of the cause of action and not part of it. The tax has been levied by the Government of Goa in respect of a business that the company is carrying on within the territory of Goa. Such tax is payable by the company not in respect of carrying on of any business in the territory of Sikkim. Merely because the petitioning company has its office in Gangtok, Sikkim, the same by itself does not form an integral part of the cause of action authorizing the petitioning company to move the High Court. The company has to bear the liability of paying tax @ 14% levied by the Government of Goa for selling lottery tickets in the State of Goa The High Court erred in dismissing the applications filed by the appellant.

Held that:- The Hon’ble Court set aside the impugned judgment and order and vacated the interim order staying the proceedings before the High Court.