Lachmi Narain and Ors.vs.Union of India and Ors.
Topic : Delegated Legislation
Provisions : Sections 2 of the Union Territories (Laws) Act, 1950
Citation : MANU/SC/0012/1975, 1975 INSC 290
Court : Supreme Court
Date of Decision : 25.11.1975
Facts
Section 2 of the Part C States (Laws) Act, 1950, empowered the Central Government to extend any enactment that is in force in a Part A State to any Part C State, or any part of such State, with such restrictions and modifications as it thinks fit. On December 7, 1957, by Notification No. S.R.O. 3908 the Central Government amended the notification of the Government of India in the Ministry of Home Affairs wherein for the words "not less than three months' notice", the words "such previous notice as it considers reasonable" shall be substituted.' was inserted in Section 6(2) of the Bengal Finance (Sales Tax) Act, 1941 (Bengal Act). This notification was challenge in these appeals as vires.
Key Takeaways for Students
Legal Issue
Whether the Notification issued by the Central Government exercise of its powers under Section 2 of the Union Territories (Laws) Act, 1950, is ultra vires the Central Government action?
Holding
The court observed that the learned single Judge of the High Court was right in holding that the impugned notification was outside the authority of the Central Government as a delegate under Section 2 of the Laws Act. The impugned notification dated December 7, 1957, purporting to substitute the words "such previous notice as it considers reasonable" for the words "not less than three months' notice" in Section 6(2) of the Bengal Act, is beyond the powers of the Central Government conferred on it by Section 2 of the Laws Act. In consequence, the notifications dated April 1, 1958, September 19, 1959, June 29, 1966, and July 31, 1970, in so far as they withdrew the exemptions from tax in the case of durries, pure silk, country liquor, kirayana articles, etc., without complying with the mandatory requirement of not less than three months' notice enjoined by Section 6(2) of the Bengal Act, are also invalid and ineffective. Thus, the judgment of the Appellate Bench of the High Court was set aside and declared the notification dated December 7, 1957, and the subsequent notifications regarding withdrawing the exemptions from tax, to be unconstitutional.