TaxTMI 
TaxTMI 
2006 (2) TMI 78
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..... We have heard Mr. Dastur, senior advocate, in support of this petition and Mr. B.A. Desai, Additional Solicitor General for respondents No. 1 to 3. This National Tax Tribunal Act, which is to come into force on December 20, 2005, seeks to create a National Tax Tribunal in pursuance of article 323B of the Constitution of India to deal with the disputes in respect of levy, assessment, collection and enforcement of direct taxes as well as to provide for adjudication by that Tribunal of disputes with respect to determination of rates of customs duties and Central excise on goods and matters connected thereunder. Section 15 of this Act provides for an appeal from the decisions of the Income-tax Appellate Tribunal and Customs, Excise and ....
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....n'ble Chief Justice of India is to be only a member of this three- member committee and on the recommendations of the committee, the Central Government has to appoint the Chairman and the members of this Tribunal. If we compare this provision with the one under section 6, sub-sections (6) and (7) of the Administrative Tribunal Act, 1985, the Chairman and the Vice-Chairman and the members of the Administrative Tribunal are to be appointed by the President of India and no such appointment shall be made except after the consultation with the Chief Justice of India. In all such matters, the opinion of the hon'ble Chief Justice of India has always been held to have primacy. The names are recommended by the administration and the hon'ble Chief Ju....
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.... being taken care of by the respective High Courts which are much easily accessible. In this behalf, reliance is placed on the Report of the Parliamentary Committee made on August 2, 2005, concerning setting up of this Tribunal which had in terms expressed doubts as to whether setting up of a Tribunal alone will reduce the pendency of tax related cases. It is also pointed out that this Committee had recommended setting up of regular Benches in the High Courts as a better way out than setting up of such a Tribunal. Similarly, with respect to uniformity of the decisions, it was pointed out that High Courts have been by and large following the uniform yardstick since it is a Central Act and there has not been much of divergence. Principally, i....
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....rticle 50 thereof. In his submission, setting up of such a Tribunal is a policy matter and is fully justified under article 323B of the Constitution. In deference to the judgment in L. Chandrakumar v. Union of India [1997] 228 UR 725 (SC); [1997] 3 SCC 261, the writ jurisdiction of the High Court is not being disturbed. He submits that the objections raised could be taken care of, but setting up of the Tribunal should not be halted which will mean an action against the statute. He relied upon the observations of the apex court in para. 30 in the case of Bhavesh D. Parish v. Union of India [2000] 101 Comp Cas 459 (SC); [2000] 5 SCC 471. In that matter, the Supreme Court was concerned with the constitutionality of section 45S of the Reserve B....
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.... Tribunal is not constituted as yet. Constituting this Tribunal and transferring the pending cases to this Tribunal in the meanwhile and subsequently deciding the validity of the statute would unnecessarily result in shifting of the cases and then bringing them back. We do not consider this case as merely a challenge to the setting up of a Tribunal. It is a matter concerning the separation of the judiciary from the executive. In our view, the high office of the hon'ble Chief Justice of India cannot be undermined in the manner in which it is sought to be undermined by making him merely a member of a three-member recommending committee. These are all questions which go to the root of the matter and are concerning basic structure of the judici....