TaxTMI 
TaxTMI 
TaxTMI 
In this small write up I had tried to summarize basic judicial verdicts which restricts the applicability of subordinate legislation beyond the boundaries specified in the Statutes.
(1) Now if there is any conflict between a statute and the subordinate legislation, it does not require elaborate reasoning to firmly state that the statute prevails over subordinate legislation and the bye-law, if not in conformity with the statute in order to give effect to the statutory provision the Rule or bye-law has to be ignored. The statutory provision has precedence and must be complied with. - BABAJI KONDAJI GARAD ETC. VERSUS THE NASIK MERCHANTS CO-OPERATIVE BANK LTD., NASIK & ORS. ETC. [1983 (10) TMI 270 - SUPREME COURT]
(2) In COMMISSIONER OF INCOME-TAX, AP VERSUS TAJ MAHAL HOTEL [1971 (8) TMI 2 - SUPREME COURT]it was held by the Supreme Court that
“the Rules were meant only for the purpose of carrying out the provisions of the Act and they could not take away what was conferred by the Act or whittle down its effect.”
(3) COMMISSIONER OF INCOME-TAX, MADRAS VERSUS S. CHENNIAPPA MUDALIAR [1969 (2) TMI 10 - SUPREME COURT] that if a rule clearly comes into conflict with the main enactment or if there is any repugnancy between the substantive provisions of the Act and the Rules made therein, it is the rule which must give way to the provisions of the Act. In Bimal Chandra Banerjee v. State of M.P. and Ors., 1970 (8) TMI 30 - SUPREME COURT, Hegde J. was examining the provisions of the M.P. Excise Act, 1915. The legislature levied excise duty only on those articles which came within the scope of Section 25 of that Act. The rule-making authority, which was the State Government, purported to levy duty on articles, which did not fall within the scope of the Section. Holding this act of the State Government to be ultra vires the Section, it was observed as under: -
“No tax can be imposed by any bye-law or rule or regulation unless the statute under which the subordinate legislation is made specially authorizes the imposition even if it is assumed that the power to tax can be delegated to the executive. The basis of the statutory power conferred by the statute cannot be transgressed by the rule making authority. A rule making authority has no plenary power. It has to act within the limits of the power granted to it.
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CA Akash Phophalia
9799569294