State Of West Bengal & Ors vs Calcutta Club Limited

The Supreme Court upheld the decision of the Calcutta High Court affirming the West Bengal Taxation Tribunal's ruling that the Calcutta Club Limited was not liable for sales tax under the West Bengal Sales Tax Act, 1994. The Court found that the doctrine of mutuality applied, as the Club acted as an agent for its permanent members, and thus, there was no sale of goods as defined under Section 2(30) of the Act. The Court clarified that payments made by members were not considered as sales transactions, leading to the conclusion that no sales tax could be levied.