Page 24 - GSTL_27th August 2020_Vol 39_Part 4

J80 GST LAW TIMES [ Vol. 39
A general power to make rules or regulations for carrying out or giving
effect to the Act, is strictly ancillary in nature and cannot enable the authority on
whom the power is conferred to extend the scope of the general operation of the
Act. Therefore such a power will not support attempts to widen the purposes of
the Act, to add new and different means to carrying them out, to depart from or
vary its terms - Dr. Machandra Prasad Singh v. Chairman Bihar Legislative Council -
(2004) 8 SCC 747.
If taxing Act makes the tax recoverable from a dealer or a person provid-
ing services, rules cannot be made under general power to carry our purposes of
the Act or to provide for manner of assessment, so as to carry out purposes of the
Act, or to provide for manner of assessment so as to make the tax recoverable
from the transferee of a dealer.
Hon’ble Delhi High Court in case of Subhash Chand Aggarwal v. Union of India
on 25 July, 2011
6. The Rules are subordinate legislation and cannot go beyond the ambit
and scope of the main enactment. In Addl. District Magistrate (Rev.) Delhi
Admn. v. Siri Ram, (2000) 5 SCC 451 Supreme Court has observed that the
mere conferment of rule-making power by an Act does not mean that the
subordinate legislation will go beyond/exceed the scope of the enabling Act.
It was held :-
“16. It is a well-recognised principle of interpretation of a statute
that conferment of rule-making power by an Act does not enable the
rule-making authority to make a rule which travels beyond the scope
of the enabling Act or which is inconsistent therewith or repugnant
thereto. From the above discussion, we have no hesitation to hold
that by amending the Rules and Form P-5, the rule-making authority
has exceeded the power conferred on it by the Land Reforms Act.”
7. In Kunj Behari Lal Butail v. State of H.P., (2000) 3 SCC 40, the Supreme
Court has observed that the delegated power to legislate Rules cannot be
used to bring within its purview/ambit a subject that has been specifically
excluded by the statute itself, or to bring into existence disabili-
ties/prohibitions not contemplated by the provisions of the Act.
New obligations or disabilities by rules
Rule 36(4) of the CGST Rules, 2017 has created the new obligation to
avail the credit of the Input Tax.
Rule 86A of the CGST Rules, 2017 has disabled the assessee to utilize the
credit of the Input Tax available in the Electronic Credit Ledger by blocking the
same.
Rule made under the power to carry out the purposes of the Act is no re-
latable to any purpose of the Act of which brings into existence “substantive
rights or obligations or disabilities not contemplated by the provision of the Act
itself” it will be invalid. It was so held in Kun Bihari Lal Butail v. State of H.P. In
this case a rule made u/s. Section 26(1) of the Himachal Pradesh Ceiling on the
Land Holding Act, 1972 which provided that no land treated as subservient to
tea planation exempted out the permission of the State Government.
Rules made by an authority ‘for discharging its functions under this Act’

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