Eden Gardens NOT a Public Place: Big Win for Cricket Association of Bengal, High Court quashes Tax Demand:

Eden Gardens NOT a Public Place: Big Win for Cricket Association of Bengal, High Court quashes Tax Demand The Cricket Association of Bengal (CAB), being the lessee of a stadium from the Government, hosted the inaugural ceremony and a semifinal match of the 1996 Wills World Cup at the stadium. The Municipal Corporation of the state issued a demand notice dated 27.03.1996 claiming Rs. 51,18,450 as advertisement tax under Section 204 of the KMC Act, 1980, for advertisements displayed during those two events. CAB challenged this notice in a writ petition, contending that the advertisements were not visible from a public place, the notice was arbitrary, and that Article 285 of the Constitution barred taxation on Union-owned property. The learned Single Judge quashed the demand notice. KMC appealed the decision before the Division Bench of the High Court.

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Main Issue: Whether the demand for advertisement tax by KMC on Eden Gardens events violated statutory requirements and principles of natural justice.

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HC's Ruling: The High Court upheld the Single Judge’s ruling and quashed the demand notice. The Court found that the notice lacked a computation basis, provided an unreasonably short time (2 days) for objection, and was issued without allowing a hearing, thus violating the principles of natural justice. Furthermore, the Court ruled that the Eden Gardens stadium was not a "public place" under the KMC Act, as access was conditional and ticketed. It also noted that without prescribed regulations or a valid budget estimate under Section 204, no valid tax assessment could have been made. Hence, the Hon'ble Court held that the demand was arbitrary, invalid, and unenforceable. To Read Full Order, Download PDF Given Below