2019 (2) TMI 1807 - HC - GST

Public Interest Litigation - closing down all running illegally teer-counters in the State and to provide age limit restrictions for entering into the betting of teer and to ensure that the distance in terms of Section 6 of the Meghalaya Regulation of the Game of Arrow Shooting and the Sale of Teer Tickets Act, 2018 - compliance of various provisions of the Act of 2018 and also to ensure that the State exchequer is not put to any loss of revenue - contention of the petitioner is that many such teer-counters in different parts of the State, especially in Garo Hills and Tura district, are being run without obtaining any license. HELD THAT - It appears that the licenses were earlier issued to various owners of different teer-counters under the Act of 1982. Now with the repeal of that Act and enactment of the Act of 2018, licensees of that time are required to obtain fresh license under the Act of 2018. It goes without saying that no such teer-counter can be allowed to run without a valid license. Compliance of Section 6 of the Act of 2018 has to be scrupulously ensured which mandates the teer-counters and bookmakers are required to be located not less than 1000 feet or 300 meters away from the nearest place of worship or educational institution. The respondent-State is directed to ensure that the sites of all teer-counters in the State are inspected, especially those teer-counters, which were run by earlier licenses and if such teer-counters are found to run without new license, they should be immediately closed down and should be allowed to operate only if they obtain the license and fulfill various requirements under the Act of 2018 especially Sections 6 and 16 - If any operator of teer-counter has an obligation to get himself registered under the Meghalaya Goods and Service Tax Act, 2017, he should be required to obtain necessary registration and make payment of due amount of GST. Petition disposed off.

Summary

Issues:
1. Operation of illegally running teer-counters without licenses under the Act of 2018
2. Lack of age limit restrictions for teer betting and violation of distance regulations under Section 6 of the Act
3. Allegations against a sports association for issuing NOCs and collecting unauthorized fees
4. Discrepancies in the number of licensed bookmakers and actual teer-counters
5. Alleged tax evasion and loss to the State exchequer
6. Compliance with the Meghalaya Goods and Service Tax Act, 2017
7. Enforcement of provisions under the Act of 2018 and monitoring of teer-counters

Analysis:
The petitioner filed a Public Interest Litigation seeking the closure of illegally operating teer-counters in Meghalaya and enforcement of age restrictions and distance regulations under the Act of 2018. Allegations were made against a sports association for issuing unauthorized NOCs and collecting fees. The petitioner highlighted discrepancies in the number of licensed bookmakers and the actual count of teer-counters, pointing towards tax evasion and substantial losses to the State revenue.

The State authorities denied knowledge of illegal activities but assured compliance with the Act of 2018. It was emphasized that teer-counters must adhere to GST regulations once the turnover threshold is crossed. The Court acknowledged the need for strict monitoring and enforcement, directing the Commissioner of Taxes to conduct inspections and ensure compliance with licensing and tax obligations.

The judgment emphasized the importance of obtaining valid licenses under the Act of 2018 and complying with distance regulations to protect public interest and prevent revenue loss. The Court directed the State to inspect and close down unlicensed teer-counters, enforce GST registration, and conduct thorough checks with the assistance of local authorities. The sports association was warned against issuing unauthorized licenses or collecting taxes, with the Commissioner of Taxes authorized to take legal action if violations were found.

In conclusion, the writ petition was disposed of with specific directions to ensure the lawful operation of teer-counters, compliance with tax laws, and strict monitoring to prevent illegal activities and revenue leakage. The judgment aimed to uphold the integrity of the regulatory framework and protect the State's financial interests.