Article 277 of the Costitution of India with Case law
Here is a detailed explanation of Article 277 of the Constitution of India along with relevant case law:
🇮🇳 Article 277 – Savings in respect of taxes levied by Union or State Governments
🔹 Text of Article 277:
"Any taxes, duties, cesses or fees which, immediately before the commencement of this Constitution, were being lawfully levied by the Government of any State or any municipality or other local authority in a State shall continue to be levied and to be applied for the same purpose until provision to the contrary is made by Parliament by law."
🔍 Explanation:
Article 277 provides a “saving clause” to preserve existing tax arrangements (pre-Constitution) by local or state governments until Parliament decides otherwise.
✅ Key Points:
| Feature | Description |
|---|---|
| Scope | Applies to taxes, duties, cesses, and fees |
| Pre-Constitution Taxation | Preserves existing taxation rights that were in force before Jan 26, 1950 |
| Who Can Levy | State Governments, Municipalities, Local Bodies |
| Overriding Provision | Parliament has the power to override such taxation by enacting a law |
| Purpose | Prevent financial disruption to States or local bodies at the time of independence |
🧑⚖️ Important Case Laws on Article 277:
🔹 Kunnathat Thathunni Moopil Nair v. State of Kerala (1961)
Citation: AIR 1961 SC 552
Held:
Though not directly under Article 277, the case explored the constitutional validity of pre-Constitution taxes.
The court held that even if a tax existed before the Constitution, it must conform to fundamental rights.
Article 277 saves taxation powers, but not if they violate Article 14 or 19(1)(g) after the Constitution came into force.
🔹 Sundararamier & Co. v. State of Andhra Pradesh (1958)
Citation: AIR 1958 SC 468
Held:
Upheld the validity of a pre-Constitution tax levied under the Madras General Sales Tax Act.
Article 277 saved it from being invalid merely because legislative entries changed after the Constitution commenced.
🔹 Western India Theatres Ltd. v. Cantonment Board, Poona (1959)
Citation: AIR 1959 SC 582
Facts: Challenge to entertainment tax by a local authority.
Held:
Local authority taxation valid under Article 277 if it was lawfully levied before Constitution.
Unless Parliament makes contrary provision, such taxes continue.
🧾 Example Scenarios:
If a municipality was collecting a sanitation cess before 1950, it can continue to do so under Article 277 unless Parliament enacts a law abolishing or modifying it.
State excise duties on alcohol that existed pre-1950 may continue unless specifically altered or repealed by Parliamentary legislation.
📌 Summary Table:
| Aspect | Details |
|---|---|
| Article Number | 277 |
| Focus | Continuance of pre-Constitution taxes |
| Applies To | States, municipalities, local authorities |
| Override Clause | Parliament can nullify via new law |
| Does not Protect | Taxes that violate fundamental rights post-1950 |
🧠 Conclusion:
Article 277 ensures that pre-existing taxes by states and local bodies do not become invalid just because of the adoption of the Constitution. However, they must conform to constitutional standards (like Fundamental Rights), and Parliament can override them by enacting a contrary law.
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