Interim stay on tax collected at source liability for portal-based transactions granted on a prima facie case.

The petition concerned liability to deduct and pay tax collected at source on transactions routed through an online portal. The petitioner argued that the portal only facilitated meetings between buyers and sellers, that the contracts were concluded offline, that it was not the liable electronic commerce operator, and that the sellers had already paid the tax. On that prima facie basis, and pending reply and further hearing, the Bombay High Court granted interim protection by staying implementation and execution of the impugned order until further orders.

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Issues: Whether the petitioner had made out a prima facie case for interim stay of the impugned order concerning liability to deduct and pay tax collected at source on transactions conducted through its portal.

Analysis: The petition challenged the order on the grounds that the portal merely facilitated meetings between buyers and sellers, that the underlying contracts were concluded offline, that the petitioner was not the liable electronic commerce operator, and that the tax had already been paid by the sellers in any event. Pending reply and further hearing, the Court found a prima facie case for interim protection.

Outcome: Interim stay of the implementation and execution of the impugned order was granted until further orders.

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