The Hindu Business Line : Tax tribunal Bill provisions draw flak from experts

THE National Tax Tribunal Bill 2004, (for both direct tax and indirect taxes) moved in the Lok Sabha earlier this month, has now been referred to the Parliamentary Standing Committee on Personnel, Public Grievances, Law and Justice for a fresh look.

But this notwithstanding, the Bill has come in for a lot of flak outside Parliament, over some of the provisions. Many provisions of the NTT Ordinance 2003, promulgated in some kind of hurry without a debate over the related Bill last year, have been watered down in the new format. But the West Bengal Bar Council and apex organisations of tax practitioners are still opposed to the tribunal, as it apparently clashes with the provisions of the Advocates Act, and is said to encroach upon well-charted legal territory.

Many question the need for such a body at this juncture, when what is actually required was to better equip the high courts to handle tax matters through creation of more revenue Benches. Key objections have been raised with regard to the Bill provisions over both "qualifications for appointment of chairperson and members" of the tribunal and "Appearance before National Tax Tribunal".

Clause 13 of the Bill says that "a party to an appeal other than Government may either appear in person or authorise one or more CAs or legal practitioners or any person duly authorised to present his case before the tribunal". The Government may authorise legal practitioners or any of its officers to present its case. Talking to Business Line, Mr Sanatan Mukherjee, Chairman, West Bengal Bar Council, the creation of such a tribunal was against the spirit of the Advocates Act, particularly, Sections 29, 30 and 31, which clearly stipulate that only advocates are allowed to practice in the High Court. He said in a tribunal, which invokes the powers of a High Court, substantive questions of law are involved, and anyone without legal training and who has not practiced as an advocate should not be allowed to represent any matter before the tribunal.

This view was shared by Dr Saradendu Biswas, former chairman of the State Bar Council, who felt that allowing persons without a legal background to represent before the tribunal was akin to encroachment into jurisdiction of the courts. Criticising the Government's policy of appointing retired judges as members of the NTT, Mr Mukherjee said only sitting judges of high court, who are in the thick of things, should be appointed as Members of NTT.

Mr K. Shivram, President of the All-India Federation of Tax Practitioners (AIFTP), speaking to Business Line from his Mumbai office, said the federation has already decided to represent the matter to the Finance Minister, expressing its reservations over some of the provisions of the NTT.

As per the pending Bill, and considering the number of appeals and references which stand transferred to the NTT from the High Courts, at least 15 Benches for direct tax matters and 10 Benches for indirect matters are going to be set up for speedy disposal of cases.