FININ2MIN · JUDGMENT INTELLIGENCE
Customs, Excise and Service Tax · F2J-C-3111

State of West Bengal v. New Kenilworth Hotel Pvt. Ltd.

The provision was capable of a lawful read-down covering director death or ordinary management change; the specific demand remained unsustainable.

By CA Nikhil Gupta · Reviewed against the retained judgment 2026-09-26

Finin2min two-minute summary

The provision was capable of a lawful read-down covering director death or ordinary management change; the specific demand remained unsustainable. State appeal partly allowed to reverse facial invalidation and read down rule 5(1) proviso (d); hotel’s 2018 demand cancellation affirmed.

Court
Calcutta High Court
Case
FMA No. 226 of 2024
Date
2026-02-26
Bench
Sabyasachi Bhattacharyya, Supratim Bhattacharya
Result
State appeal partly allowed to reverse facial invalidation and read down rule 5(1) proviso (d); hotel’s 2018 demand cancellation affirmed.
Neutral citation
2026:CHC-AS:338-DB
CNR
Not stated in retained copy
Connected matters
None recorded
Relevant period
See facts and judgment
Read complete judgment PDFPublic court copyOfficial court portal

What happened

A hotel liquor licensee disputed a fee imposed on corporate management change and the underlying rule’s reach.

Questions before the court

Why the court ruled this way

The provision was capable of a lawful read-down covering director death or ordinary management change; the specific demand remained unsustainable.

Controlling point

The provision was capable of a lawful read-down covering director death or ordinary management change; the specific demand remained unsustainable.

Order and next steps

State appeal partly allowed to reverse facial invalidation and read down rule 5(1) proviso (d); hotel’s 2018 demand cancellation affirmed.

Practical implications

The operative result is case-specific: State appeal partly allowed to reverse facial invalidation and read down rule 5(1) proviso (d); hotel’s 2018 demand cancellation affirmed. Apply it within the court’s stated limit: Rule was not erased; a future change must be tested against the narrowed construction.

Limits of this ruling

Law and judgment source

The linked PDF is a complete public court-copy document. The official court portal is provided for independent verification; a stable judgment-specific official link was not independently established. A three-byte UTF-8 transport prefix preceding the PDF signature was removed to make the unchanged PDF content open in standard readers. A three-byte UTF-8 transport prefix before the PDF signature was removed; internal PDF bytes were unchanged.

Source checked: 2026-09-26 · Judgment paragraphs: paragraphs 125–134 · Later case history: not verified. Verify appeals, stays and subsequent orders before reliance.

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