“Eden Gardens Not A Public Place”: Supreme Court Upholds Calcutta HC Verdict, No Advertisement Tax On In-Stadia Ads [Read Order]

In a recent ruling, the Supreme Court upheld the Calcutta High Court’s decision holding that Eden Gardens is not a public place and that the Kolkata Municipal Corporation (KMC) could not impose advertisement tax on in-stadia advertisements displayed during the 1996 Cricket World Cup.

KMC had issued a demand notice dated 27 March 1996 requiring the Cricket Association of Bengal (CAB) to pay Rs. 51,18,450 as advertisement tax for banners displayed inside Eden Gardens on 11 February and 13 March 1996.

CAB challenged the notice before the High Court, arguing that the advertisements inside the stadium were not visible from any public street or public place, and that no proper hearing or calculation was provided before issuing the demand.

CAB’s counsel argued that Eden Gardens is not a public place because members of the public cannot enter without conditions, and CAB can refuse admission even to a person willing to buy a ticket. They further argued that KMC had not framed the regulations required to compute advertisement tax and that the demand was issued without giving CAB a fair chance to respond.

KMC argued that the stadium should be treated as a place open to the public on ticketed days and that the tax was correctly imposed.

The High Court observed that the demand notice gave CAB only two days to object and three days to pay, and that no reasoning or breakup of the tax amount was provided. The court explained that such a short time to respond was unfair and violated natural justice. It also pointed out that KMC had not produced any regulations or budget-based rate required under Section 204 of the KMC Act to levy advertisement tax.

The court held that a place becomes public only if people have unrestricted access, and since Eden Gardens admits people only on conditions, it cannot be treated as a public place. The court quashed the demand notice, holding that the proceedings were arbitrary and legally unsustainable.

KMC challenged this decision before the Supreme Court. After hearing both sides, the Bench of Justice Vikram Nath and Justice Sandeep Mehta stated that it was not inclined to interfere with the High Court’s judgment and dismissed the Special Leave Petition.

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