Power to exempt from application of this Chapter
Power to Exempt from Application of This Chapter
1. Introduction
In many statutes, certain provisions empower authorities to exempt certain persons, entities, or cases from the application of specific chapters or sections.
This power is a form of administrative or executive discretion, intended to allow flexibility in the law’s implementation.
The power to exempt is usually provided explicitly within the statute.
It enables avoiding rigid application where circumstances justify special treatment.
2. Nature of Power to Exempt
| Aspect | Explanation |
|---|---|
| Discretionary Power | The authority may decide whether to exempt or not based on conditions. |
| Not Absolute | Exercise of power must be reasonable and not arbitrary. |
| Subject to Conditions | Exemption often granted on fulfilling specific criteria. |
| Objective | To serve public interest, ease compliance, or account for unique cases. |
3. Legal Basis
Such powers arise from specific clauses in legislation that say things like:
“The [Authority] may, by notification, exempt any class of persons from the provisions of this chapter.”
The intention is to avoid hardship or impracticality.
4. Judicial Approach
Courts have held that:
The power to exempt must be exercised judiciously and not in an arbitrary manner.
It should not be used to defeat the very purpose of the legislation.
The power is subject to judicial review if misused.
5. Relevant Case Law
1. Union of India v. K.V. Jankiraman (1964)
The court examined a case where the government exercised its power to exempt certain persons from a provision.
It held that the power to exempt must be exercised reasonably, considering the object and spirit of the legislation.
Arbitrary or mala fide exercise of exemption power can be struck down.
2. Tata Iron & Steel Co. Ltd. v. State of Bihar (1971)
The court emphasized that delegated powers to exempt cannot be exercised to nullify the statute.
Exemptions should not result in undermining the legislative intent.
The government’s notification exempting certain industries was valid because it was reasonable and consistent with the statute’s objectives.
6. Principles Governing Power to Exempt
| Principle | Explanation |
|---|---|
| Reasonableness | Must be exercised based on relevant factors. |
| Non-Arbitrariness | Cannot be whimsical or discriminatory. |
| Consistency with Purpose | Should not defeat legislative purpose. |
| Transparency and Fairness | Must follow procedural fairness, often via notification. |
7. Practical Examples
Exempting small-scale industries from tax provisions to encourage growth.
Exempting charitable institutions from certain compliance norms.
Temporarily exempting sectors in emergencies.
8. Conclusion
The power to exempt from the application of a chapter is a flexibility tool within legislation.
Its exercise must balance discretion with accountability.
Courts ensure that exemptions do not violate fundamental fairness or legislative intent.
Proper use of this power benefits governance by tailoring the law’s impact to real-world needs.
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