LACHMI NARAIN Vs. UNION OF INDIA

JUDGEMENT

(1.) The nature and scope of delegated power to modify a Statute and the circumstances in which the exercise of such a power may be questioned are the general aspects of the quetions arising in this and the other connected writ petitions.

(2.) Under section 2 of the Union Territories (Laws) Act 1950 "the Central Government may. by notification in the Official Gazette. extend to the Union Territory of Delhi, Himachal Pradesh, Manipur or Tripura or to any part of such Territory with such restrictions and modifications as it thinks fit, any enactment which is in force in. a State at the date of the Notification."

(3.) Accordingly by notification No. SRO-615 dated 28th April 1951. the Central Government extended the Bengal Finance (Sales Tax) Act 1941 to the Union Territory of Delhi with the restrictions and modifications laid down in the said notification. Under section 6( 1 ) of the Bengal Finance (Sales Tax) Act 1941 "no tax shall be payable under this Act on the sale of goods specified in the Second Schedule, subject to the conditions and exceptions, if any, set out therein." In the original Second Schedule 'ghee' was exempted by item No. 16 from sales tax. .Item No. 17 originally exempted "cloth of such description as may from time to time be specified by notification in the Gazette, costing less per yard then Rs. 3.00 or such other sum as may be so specified". The original section 6(2) of the Bengal Finance (Sales Tax) Act 1941 was as follows :-