1961 (12) TMI 66

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....but also the sales of groundnut oil made out of the groundnut seeds purchased by him. Under the provisions of the Mysore Sales Tax Act, 1948, at one stage till 14th December, 1948, all purchases of groundnut seeds were taxable and all sales of groundnut oil were also taxable. But from the turnover relating to the sales of groundnut oil, the price for which the groundnut seeds had been purchased by the dealer had to be deducted with the result that there was in effect no double taxation. With effect from 14th December, 1948, all purchases of groundnut seeds for export were taxable and all sales of groundnut oil and cake were also taxable. But with effect from 1st April, 1951, all sales of groundnut seeds were taxed and all sales of groundnu....

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....e on the State Government to vary these rules, and if it did so, as it has done in this case, it delegated to the Government, power which was not delegatable. It is with the validity of this contention with which we are concerned in this case. It is now well-settled law that although an essential legislative function is not delegatable, the legislature has the competence to delegate to a designated authority the power to fill up all subsidiary details if the law enacted by the legislature contains a clear enunciation of the legislative policy underlying the enactment. Now the legislative policy underlying the Sales Tax Act is that the turnover of a dealer shall be taxed. The rules contained in schedule II provided for the manner in which ....

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....rmined in accordance with the rules contained in schedule II of this Act: Provided that the State Government shall have the power to, vary any part of the schedule after duly notifying the changes in the official Gazette." It is contended that the determination of the turnover and the rules in accordance with which such determination may be made are matters in regard to which the legislature alone has the competence to make a law and that therefore if the legislature made rules contained in schedule II to the Act, it had no power to bestow competence on the State Government to vary these rules, and if it did so, as it has done in this case, it delegated to the Government, power which was not delegatable. It is with the validity of this co....