Tax levy cannot be suspended by executive instruction when the statute provides no exemption power.

Tax liability created by the Assam Finance (Sales Tax) Act, 1956 could not be stopped or removed by executive direction in the absence of statutory authority. The Act imposed levy under Section 3(1) and did not empower the State Government or the Commissioner of Taxes to exempt scheduled goods by administrative order; the only relevant power mentioned was the power to add goods to the Schedule under Section 42. Although the Assam General Sales Tax Act, 1993 contemplated eventual exemption of the goods concerned, that legislation had not yet come into force, so the existing statutory levy continued until proper amendment or commencement of the new law. Executive directions were therefore legally ineffective and unenforceable.

---

---

Issues: Whether the State Government or the Commissioner of Taxes could, by executive direction, stop collection of tax leviable under the Assam Finance (Sales Tax) Act, 1956 in respect of goods covered by the statutory schedule, and whether the impugned directions were legally effective.

Analysis: The tax liability under the Assam Finance (Sales Tax) Act, 1956 arose under Section 3(1), and the Act did not confer any power on the State Government or the Commissioner of Taxes to exempt scheduled goods from tax by administrative order. The only relevant enabling power referred to was the power to add goods to the Schedule under Section 42, not a power to withdraw tax liability by executive fiat. Although the Assam General Sales Tax Act, 1993 had been enacted and its provisions contemplated eventual exemption of the goods in question after commencement, that Act had not yet come into force. Until the new Act was brought into operation, or the earlier Act was appropriately amended, the existing statutory levy continued to govern.

Conclusion: The impugned directions were legally ineffective and unenforceable, and the writ petition succeeded.

Final Conclusion: Tax liability created by statute cannot be suspended or removed by executive instruction in the absence of statutory authority, and any exemption must operate only through law.

Ratio Decidendi: Executive directions cannot negate a tax levy imposed by statute unless the statute itself authorises such exemption or the law is amended or brought into force accordingly.

---