In Brief
The State of Goa challenged the High Court of Sikkim's jurisdiction to entertain writ petitions against a Goa notification levying GST on lottery tickets at 14%. The petitioner company, based in Sikkim, sold lottery tickets in Goa and challenged the notification before the High Court of Sikkim. The Supreme Court held that the High Court of Sikkim lacked territorial jurisdiction because the cause of action (tax liability arising from business in Goa) did not arise within Sikkim's territory. The Court clarified that the material facts constituting the cause of action must be integral to the relief sought and must have a nexus with the subject matter. Mere location of a business's office in Sikkim does not confer jurisdiction. The appeals were allowed and Goa was deleted as a respondent; the petitioners were directed to approach the High Court of Bombay at Goa if they wished to challenge the notification.
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