Calcutta High Court Rules Eden Gardens Not a Public Place; CAB Not Liable for Advertisement Tax

In a major relief to the Cricket Association of Bengal (CAB), the Calcutta High Court has ruled that Eden Gardens does not constitute a “public place” under the Kolkata Municipal Corporation (KMC) Act, thereby exempting the association from paying advertisement tax. The court dismissed KMC’s ₹51.18 lakh tax demand, which was related to advertisements displayed during the 1996 Cricket World Cup.

A division bench comprising Justices Arijit Banerjee and Kausik Chanda upheld a 2015 single-judge verdict that had struck down KMC’s claim. The bench emphasized that a “public place” must be one that is accessible to the general public without restrictions such as ticketing or permission. Since entry to Eden Gardens is regulated and requires tickets, it does not fall under this definition, the court stated. The CAB, as the managing body, also retains the authority to deny entry to individuals, further supporting the argument that it is not a fully public venue.

The court criticized KMC for issuing the tax notice without proper hearing or detailed calculations. It also pointed out that KMC had attempted to initiate criminal proceedings against CAB without adhering to due process. Additionally, the court noted that Eden Gardens is situated on land leased from the Ministry of Defence, invoking Article 285 of the Constitution, which restricts state taxation on Union government property.

To further clarify its stance, the court explained that even a stadium filled with spectators cannot be classified as a public space if access is controlled through tickets. Visibility of advertisements to a crowd does not automatically bring the location under the purview of public advertising tax.

The judgment reinforces legal safeguards around tax enforcement and establishes that advertising taxes are not applicable in privately controlled, restricted-access venues like Eden Gardens.