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The Supreme Court has delivered a significant judgment in a long-running dispute originating from advertisements displayed during the 1996 Wills World Cup. By affirming the 2025 Calcutta High Court order, the Court has clarified the meaning of “public place” under municipal taxation law and set important procedural standards for local authorities. Background of the Dispute The controversy dates back to advertisements displayed inside Eden Gardens Stadium during two major World Cup events: Inaugural ceremony on 11 February 1996 Semi-final match on 13 March 1996 On 27 March 1996, the Kolkata Municipal Corporation (KMC) issued a tax demand of ₹51,18,450 to the Cricket Association of Bengal (CAB) under Section 204 of the Kolkata Municipal Corporation Act, 1980, alleging that advertisements displayed inside the stadium attracted advertisement tax. CAB challenged the tax demand before the Calcutta High Court, ultimately resulting in a litigation battle that lasted nearly three d...

SC Rules: Only States Can Tax Lotteries – No Service Tax by Centre Introduction In a significant verdict , the Supreme Court of India ruled that lottery distributors are not liable to pay service tax to the Central Government . The apex court upheld the Sikkim High Court's 2012 decision , stating that only state governments have the power to impose taxes on lotteries under Entry 62, List II of the Seventh Schedule of the Constitution of India. This ruling brings clarity to the taxation of lotteries , reinforcing the exclusive authority of states over gambling-related activities. The Supreme Court's Judgment Key Observations by the Bench 🔹 The bench of Justices BV Nagarathna & N Kotiswar Singh dismissed the Centre’s appeal, citing that the Finance Act amendments of 2012, 2015, and 2016 , which sought to levy service tax on lottery distributors, were ineffective . 🔹 The SC upheld that the business of lotteries operates on a Principal-to-Principal basis , meani...