STATE OF WEST BENGAL vs CALCUTTA CLUB LIMITED

The Supreme Court held that the supply of food and drinks by a members' club to its permanent members does not constitute a 'deemed sale' under Section 2(30) of the West Bengal Sales Tax Act, 1994, as there is no exchange of consideration between the club and its members due to the doctrine of mutuality. The Court affirmed the Tribunal's decision that the club is not liable to pay sales tax, emphasizing that payments made by members are merely reimbursements and do not qualify as consideration for sales tax purposes. The ruling clarifies the interpretation of Article 366(29-A) of the Constitution in relation to sales tax liability for clubs.