Report No. 108

2.8. Narinder Chand v. Union territory, H.P.-

In this case,1 the appellant was. the highest bidder at an auction for dealing in liquor. He alleged that at the time of the auction, the Dy. Commissioner announced that no Sales-Tax would be liable to be paid on the sales of liquor, but despite the announcement (assurance) Government has levied and was taking steps to levy sales-tax on such sales. The Court held:

"The power to impose a tax is undoubtedly a legislative power. That power can be exercised by the legislature directly or, subject to certain conditions, the legislature may delegate the power to some other authority. But the exercise of that power, whether by the legislature or by its delegate is an exercise of a legislative power ... Unless the executive is specifically empowered by law to give an exemption, it cannot say that it will not enforce the law as against a particular person. No court can give a direction to a Government to refrain from enforcing a provision of law."

Referring to the Bombay Corporation case, the Court incidentally observed that it was case of relationship between landlord and tenant.

1. AIR 1971 SC 2399.