Taxes not to be imposed save by authority of law
Quick Summary (TL;DR)
No Taxation Without Authority of Law: "No tax shall be levied or collected except by authority of law." Protects citizens and businesses from illegal fines, extortionate fees, or executive taxes not passed by Parliament or a State Legislature.
In Simple Citizen Words
Article 265 embodies the historic democratic principle 'No Taxation Without Representation' in just 12 words: 'No tax shall be levied or collected except by authority of law.' Here, 'law' means a statute enacted by Parliament or a State Legislature—NOT an executive circular, departmental notification, municipal whim, or police order.
If a government department, municipality, panchayat, or tax officer demands money, cess, toll, or surcharge that is not backed by an enacted statute, or collects tax beyond the statutory limit, Both the levy and the collection are unconstitutional under Article 265, and the citizen has a constitutional right to a refund (Mafatlal Industries v. Union of India, 1997).
If a government department, municipality, panchayat, or tax officer demands money, cess, toll, or surcharge that is not backed by an enacted statute, or collects tax beyond the statutory limit, Both the levy and the collection are unconstitutional under Article 265, and the citizen has a constitutional right to a refund (Mafatlal Industries v. Union of India, 1997).
Key Constitutional Provisions
Absolute immunity from paying any tax, cess, toll, or mandatory fee not authorized by an Act of Parliament or State Legislature
Right to demand the statutory provision and official receipt for any fine, challan, or municipal fee collected by officials
Right to claim refund of illegally or mistakenly collected tax via High Court writ under Article 226
Exceptions & Reasonable Restrictions
The Legislature has plenary power to enact prospective (and in valid fiscal cases, retrospective) tax laws under the Seventh Schedule, provided they do not violate Fundamental Rights (Articles 14 and 19(1)(g)).
Why This Matters in Daily Life
Whenever an unauthorized toll booth, local body, or official tries to collect "entry fees" or arbitrary penalties without statutory backing, Article 265 makes that collection illegal.
Want deeper legal & historical context? Explore the official Bare Act or Supreme Court Precedents & CAD Debates: