ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 28.08.2025
Delegated Legislation in Indirect Taxes: Judicial Scrutiny under the Customs Act, 1962 & Indirect Taxes
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This Article has been written by Shri Ravi Shekhar Jha, Advocate based in New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
1. Constitutional Framework for Delegated Legislation
- Article 245โ246: Only Parliament/State legislatures can levy taxes; delegation cannot include โessential legislative functions.โ
- Article 265: โNo tax shall be levied or collected except by authority of law.โ Thus, a rule, notification, circular, or regulation cannot create/expand a tax liability without clear legislative sanction.
- Doctrine of Excessive Delegation: Laid down in In re Delhi Laws Act (1951 SCR 747), later reaffirmed in Avinder Singh v. State of Punjab (1979 1 SCC 137). Parliament may delegate the manner or details of implementation, but not the policy or essential features.
- Judicial role: Courts test whether delegated instruments remain within the โparent Actโ or trespass into taxation without statute.
This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
Source: Multiple sources- High Court, Indian Kanoon, Economic Times
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