A Manitoba First Nations leader said he will not pay a fine for operating a smoke shop and is looking at legal options for stopping the province from shutting down the store.

The controversial business at the centre of the legal battle is the Dakota Chundee Smoke Shop in the RM of Pipestone, located in southwestern Manitoba.

A Manitoba court issued the fine against Chief Frank Brown of the Canupawakpa First Nation.

Brown said he couldn’t remain in the court to hear the ruling.

“I couldn’t stay in the court because I don’t have the right to be there yet, until they prove they have jurisdiction…so I walked out,” said Brown on Monday.

He was fined $10,000 for contempt of court for operating the smoke shop.

A judge also gave the province the power to shut the shop down and take ownership of the land and building.

Brown said he won’t stage a demonstration when the province moves in, but added he still plans to seek legal advice on opposing the store’s closure.

“The main question for me is what (are) the protocol and the procedures of a corporation like Manitoba to challenge a sovereign nation?” asked Brown.

In an effort to create revenue for the Dakota people, the smoke shop began selling discounted cigarettes a year ago without paying provincial sales taxes, meaning they’re sold at half the price of a typical cartoon.

The shop has been raided five times since opening.

Brown said they’re not breaking any laws because the Dakota people never signed a treaty with Canada.

“We need to look after our people and that's what it's about. It's a life and death crisis right now,” said Brown.

He said he wants the province to give him a legal document saying the Dakota people have to pay provincial sales taxes on their own land. Until that happens, he said he’s not breaking any laws.

Earlier in 2012, the province introduced legislation that allows the government to swiftly stop anyone from selling tobacco without a provincial licence.  

The province says the Nov. 5 ruling further validates that what the smoke shop is doing is illegal.

The province said Manitoba sheriff services will be working with RCMP and finance officials to close the shop.

- with files from The Canadian Press