Interim restraint on National Tax Tribunal notification pending hearing over operational readiness and transfer prejudice concerns

Interim restraint was granted against issuing the notification contemplated by section 3 of the National Tax Tribunal Ordinance, 2003, because the application questioned the justification for promulgation under Article 123 and pointed to the absence of a constituting notification, inadequate infrastructure for the Tribunal's Benches, and possible prejudice if pending appeals and references were transferred before the Tribunal became operational. The Court maintained the status quo until the next date and directed that no notification under section 3 be issued in the meantime.

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Issues: Whether interim protection should be granted restraining issuance of the notification contemplated by section 3 of the National Tax Tribunal Ordinance, 2003 pending further hearing.

Analysis: The application questioned the justification for promulgation of the Ordinance under Article 123 of the Constitution of India and highlighted the absence of a notification establishing the Tribunal, lack of infrastructure for its Benches, and the likelihood of prejudice if pending appeals and references stood transferred before the Tribunal became operational. On these grounds, the Court considered it appropriate to maintain the status quo until the next date.

Conclusion: Interim restraint was granted, and the opposite parties were directed not to issue any notification under section 3 of the Ordinance till the next date.

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