Case Studies & Examples of Section 27 Invocation
1. Implementation of the Goods and Services Tax (GST) Act, 2017
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Context: After GST was introduced in 2017, the government faced many operational difficulties, such as procedural challenges in filing returns, IT infrastructure readiness, and transitional issues from earlier tax regimes.
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Use of Section 27: The Central Government issued multiple notifications and circulars under its powers (including Section 27 of the General Clauses Act) to relax timelines, extend deadlines, and clarify procedural ambiguities.
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Result: These orders helped smoothen GST implementation without invalidating the core provisions of the Act.
2. Income Tax (Amendment) Act – Transitional Provisions
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Context: When amendments were made to Income Tax laws, certain provisions were difficult to implement immediately, especially those affecting assessment years or procedural compliance.
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Use of Section 27: The government issued orders under Section 27 to modify the applicability timelines or provide grace periods for taxpayers to comply.
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Result: This eased the transition and prevented hardship.
3. Mines and Minerals (Development and Regulation) Act, 1957
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In certain states, while implementing amendments or new rules related to mining leases and royalty payments, the government invoked Section 27 to issue temporary orders for easing compliance during transitional phases.
Relevant Court Cases Discussing Section 27
1. M/s. D.V. Paluskar v. Union of India, AIR 1956 SC 169
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The Supreme Court recognized that Section 27 empowers the government to issue orders to remove difficulties but emphasized that such orders must not conflict with the provisions of the Act and are limited to a reasonable time frame.
2. State of Punjab v. Devans Modern Breweries Ltd., (2004) 5 SCC 510
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The Supreme Court held that the power under Section 27 is a temporary and remedial power and cannot be used to amend or override substantive provisions of the law.
3. State of Tamil Nadu v. L. Balakrishnan, AIR 1975 SC 282
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The Court noted that Section 27 is meant to facilitate the law's operation and should not be construed to enlarge or alter the scope of the Act beyond its intention.
Summary
| Aspect | Explanation |
|---|---|
| Purpose | Temporary removal of difficulties |
| Nature | Remedial and enabling power |
| Limitations | Cannot override substantive law; time-bound |
| Common Usage | Tax laws, regulatory laws, administrative rules |
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