Article 265: A Basis for Legitimate Tax Imposition

Introduction: The Concept of Grundnorm

All human-made laws derive their legitimacy from a fundamental law, often referred to as the “parent law.” In legal terminology, this concept was introduced by Hans Kelsen in his ‘Pure Theory of Law.’ He coined the term “Grundnorm” to describe the fundamental law from which all other laws gain their authority. In India, the Constitution can be considered the perfect example of a Grundnorm.

Article 265: Taxes and the Authority of Law

The Constitution of India comprises 448 articles, one of which is Article 265, titled “Taxes not to be imposed save by authority of law.” The bare provision reads:

“No tax shall be levied or collected except by the authority of law.”

This clause contains two essential elements:

  1. A taxing statute must exist.
  2. The statute must be passed by an appropriate authority to ensure its validity.

This protects citizens from exploitation under the guise of authority.

The Definition of “Authority” in Article 265

The term “authority” has a broad scope. In India, the Parliament holds the supreme power to make laws, provided the subject matter falls within the Union’s legislative domain. Specifically, in taxation, Parliament can only impose taxes on subjects listed under the Union List. However, Parliament can sometimes impose taxes on subjects in the State or Concurrent Lists.

States also have the authority to impose taxes, as long as they pertain to matters within the State List. Similarly, municipalities, local bodies, and other government institutions can impose taxes if a law allows it.

Role of Judiciary in Interpreting Authority

The judiciary has the power to interpret and validate the authority of institutions claiming to impose taxes. Several key cases highlight how the courts have examined this issue.

Case Law: Poona Municipality vs. Dattatraya Nagesh Deodhar [AIR 1965 SC 555]

This case dealt with the recovery of money related to octroi duty, a local tax collected on goods brought into a city. Poona City Municipality had been collecting octroi duty since 1901. After the Bombay Provincial Municipal Corporation Act, 1949 came into effect, the municipality deducted 10% from octroi duty refunds, despite the new Act not authorizing such a deduction.

Key Rulings:

  • The deduction was not permitted under the Bombay Municipal Corporation’s powers.
  • No standing order justified the deduction.
  • The deduction had no legal basis after the enactment of the new law.

Case Law: Chhotabhai Jethabhai Patel vs. Union of India [AIR 1962 SC 1006]

In this case, a tobacco company challenged the retroactive imposition of excise duty under the Finance Act, 1951. The Parliament had passed a bill amending the Central Excise and Salt Act, 1944, and applied the increased duty retroactively.

Key Rulings:

  • Parliament, as a sovereign body, can pass laws with both prospective and retrospective effects.
  • The duties levied under the Central Excises and Salt Act were valid, even when applied retrospectively.

Conclusion

The Constitution of India, as the Grundnorm, governs all laws, including taxing statutes. It ensures that taxation laws do not infringe upon the rights of taxpayers. The judiciary plays a critical role in interpreting the provisions of the Constitution, including determining which authorities are empowered to impose taxes and under what conditions.

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Exciting Associate Position at Chambers of Sonali Chopra 2025 – Apply Now

The Associate Position at Chambers of Sonali Chopra is a valuable opportunity for young law professionals to kickstart or advance their litigation careers in New Delhi. Located in Panchshila Park, this role is ideal for fresh graduates and junior advocates with up to two years of post-qualification experience (PQE), looking to grow in the fields of civil, commercial, family, and arbitration law.

With two vacancies open, the chambers is seeking individuals who are committed to the practice of law, have a good command over legal drafting, and are enthusiastic about appearing in courts and tribunals. The joining is for July 2025 and will be on a rolling selection basis.

About the Chambers

The Chambers of Sonali Chopra is a dynamic litigation office based in Delhi with a growing reputation for handling a broad spectrum of dispute matters across civil, commercial, family, and arbitration domains. The office is known for its high standards in legal drafting, court appearances, and strategic dispute resolution.

Associates working here gain real exposure through hands-on involvement in cases, interactions with clients, and the opportunity to appear before courts and tribunals under close supervision and mentorship.

Role Details

  • Position: Counsel / Associate
  • Vacancies: 2 (Two)
  • Location: Panchshila Park, New Delhi
  • Experience Required: 0–2 Years PQE
  • Practice Areas:
    • Civil Disputes
    • Commercial Disputes
    • Matrimonial & Family Law
    • Arbitration & Alternate Dispute Resolution
  • Remuneration: As per industry standards; will depend on experience and merit of the selected candidate

This role is for immediate joining in July 2025, and selected candidates will be expected to take on significant responsibilities from day one.

What You’ll Be Doing

As an Associate at Chambers of Sonali Chopra, your key responsibilities will include:

  • Court Appearances at District Courts, High Courts, Family Courts, and Tribunals
  • Drafting legal documents such as petitions, suits, written statements, rejoinders, and legal notices
  • Conducting legal research and preparing case notes and briefs
  • Managing client communications and assisting with strategy formulation
  • Participating in arbitration hearings and assisting in pre-litigation advice and settlement work
  • Supporting the senior counsel in preparing for arguments and cross-examinations

The work involves a good balance of litigation and chamber work, ensuring holistic legal development.

What We’re Looking For

Ideal candidates should possess:

  • An LL.B. degree from a recognized university (Bar enrolment required)
  • 0–2 years of litigation or arbitration experience
  • A genuine interest in dispute resolution and courtroom practice
  • Strong legal research and drafting skills
  • Professional communication and case management capabilities
  • Willingness to learn and handle responsibility proactively
  • Punctuality, discipline, and a long-term commitment mindset

Freshers with relevant internships in litigation or arbitration will also be considered seriously, provided they demonstrate the right attitude and clarity.

Why Join the Chambers of Sonali Chopra?

Joining the Chambers of Sonali Chopra offers:

  • Real litigation experience across forums
  • Guidance from an experienced practitioner with a growing profile in Delhi
  • Opportunities to develop your independent practice while learning
  • A collaborative and performance-oriented work environment
  • Exposure to a wide variety of dispute matters that help sharpen legal instincts

Unlike routine internships or desk jobs, this associate role offers courtroom engagement, drafting depth, and learning-by-doing—key for those who want to build a long-term career in dispute resolution.

How to Apply

Interested candidates should apply by sending their updated CV along with a brief cover letter (optional) to:

office@sonalichopra.co
Subject Line: Associate (July 2025)

Applications will be processed on a rolling basis, so early applicants may have an advantage. Only shortlisted candidates will be contacted for interviews.

Final Note

The Associate Position at Chambers of Sonali Chopra is more than just a job—it’s a foundational opportunity for young lawyers to understand the intricacies of litigation, gain confidence in advocacy, and build strong legal skills in a fast-paced yet supportive environment.

If you’re a recent graduate or a young professional passionate about courtroom law and dispute resolution, take this opportunity seriously and apply today.

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