Article 265 of the Constitution provides that:
Ataxes within India can be levied only by Parliament and never by State Legislatures
Bno tax shall be levied or collected save by the authority of a duly enacted law
Cservice tax, being indirect, is exempt from the constitutional law-authority restrictions
DStates cannot levy any indirect taxes of any kind, including taxes on entry of goods
Answer & Solution
Correct answer: B. no tax shall be levied or collected save by the authority of a duly enacted law
1. Article 265 reads: 'No tax shall be levied or collected except by authority of law.'
2. This requires not merely an executive order but a duly enacted statute (legislative imprimatur).
3. Both Union and State legislatures can levy taxes within their respective competences (Lists I and II of the Seventh Schedule).
4. Service tax was constitutional via the residuary power of the Union (Entry 97 of List I, pre-GST).
_Source: Constitution of India (Bare Act, updated to 105th Amendment Act 2021), Govt. of India Legislative Dept., Article 265_
Related questions
In National Legal Services Authority (NALSA) v. Union of India, (2014) 5 SCC 438, the SuprThe Constitution (103rd Amendment) Act, 2019 — providing 10 per cent reservation for EconoArticle 131 of the Constitution confers on the Supreme Court of India:Which case overruled the proposition in A. K. Gopalan v. State of Madras, AIR 1950 SC 27 tArticles 280 (Finance Commission) and 281 (recommendations of the Finance Commission) beloThe Eleventh Schedule of the Constitution lists subjects that may be devolved by State LegArticles 243 to 243-O of the Constitution, inserted by the 73rd Amendment Act, 1992, deal The Sixth Schedule of the Constitution provides for the administration of tribal areas in