The Hindu Business Line : Tax tribunal Bill introduced

THE Government on Monday introduced a Bill in the Lok Sabha that would pave the way for the setting up of a National Tax Tribunal (NTT) with at least 25 benches across the country.

The tribunal, which would examine cases relating to both direct and indirect taxes, is to be set up for speedy disposal of tax cases pending before the various high courts of the country.

The pendency of large number of tax cases in the High Courts has resulted in huge revenues being blocked in litigation, thereby adversely affecting the economy.

Besides the fast disposal of cases, the NTT is also expected to bring about uniformity in the decision-making process.

The Union Law Minister, Mr H.R. Bharadwaj, today piloted the National Tax Tribunal Bill, 2004. The Bill provides for the establishment of NTT for adjudication of disputes relating to levy, assessment, collection and enforcement of direct taxes and the determination of the rates of duties of Customs and central excise on goods and the valuation of goods for the purpose of assessment of such duties and also levy of tax on services.

The National Tax Tribunal would hear cases on substantial question of law from decisions of the Income Tax Appellate Tribunal and the Customs, Excise and Service Tax Appellate Tribunal.

The chairperson of the proposed NTT would be a retired judge of the Supreme Court or a retired Chief Justice of the High Court and would hold office for five years or till 68 years.

The retirement age for other members would be 65 years. Each bench will have two judicial members.

A selection committee consisting of the Chief Justice of India or his nominee, the Law Secretary and the Revenue Secretary would select the chairperson and members

A fresh Bill is being introduced in Parliament as the earlier Bill introduced by the National Democratic Alliance (NDA) Government had lapsed following the dissolution of the 13th Lok Sabha.

The NDA Government, on October 16, 2003 promulgated an ordinance for setting up a NTT. This ordinance ceased to operate on January 12, 2004.