The Supreme Court has dismissed the Kolkata Municipal Corporation’s ₹51.18 lakh advertisement tax demand from the Cricket Association of Bengal for the 1996 World Cup held at Eden Gardens. The ruling clarifies the definition of a “public place” for tax purposes.
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NEW DELHI: In a ruling, the Supreme Court on Friday dismissed a petition filed by the Supreme Court Dismisses Kolkata Municipal Corporation’s Advertisement Tax Claim Against Eden Gardens (KMC) challenging a Calcutta High Court order that had quashed its ₹51.18 lakh advertisement tax demand from the Cricket Association of Bengal (CAB) for the 1996 Cricket World Cup events held at Eden Gardens.
Background
KMC had issued a demand notice on March 27, 1996, seeking ₹51,18,450 from CAB as advertisement tax for:
- The inaugural ceremony on February 11, 1996, and
- The semifinal match on March 13, 1996,
Both were hosted at the iconic Eden Gardens stadium.
Advertisements displayed inside and outside the stadium during the World Cup events formed the basis for the tax claim under provisions of the Kolkata Municipal Corporation Act, 1980.
High Court’s Findings
CAB challenged the notice before a single judge of the Calcutta High Court, arguing that Eden Gardens is not a public place. The association contended that the advertisements displayed within the stadium were not visible from public streets or open public areas, and therefore, no advertisement tax could be levied. The single judge agreed and quashed the tax notice.
KMC appealed, but in April 2015, a division bench upheld the ruling, stating that,
“A public place must be accessible to an indeterminate number of people without any hindrance or condition.”
The bench noted that Eden Gardens is leased by CAB, the property is owned by the Ministry of Defence, and entry to the stadium is subject to tickets and restrictions. Hence, it cannot be classified as a public place for advertisement tax.
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Supreme Court Upholds High Court Decision
A bench of Justices Vikram Nath and Sandeep Mehta heard KMC’s challenge to the High Court’s June order that reaffirmed the 2015 ruling. The Supreme Court found no reason to interfere and dismissed the plea, effectively upholding both the classification of Eden Gardens as not a public place and the quashing of the ₹51.18 lakh advertisement tax demand.
The judgment:
- Ends a nearly three-decade-old dispute between KMC and CAB.
- Reinforces legal clarity on what constitutes a “public place” for advertisement tax purposes.
- Sets a precedent for similar disputes involving sports venues, restricted-access properties, and private events.
