2007 (1) TMI 40 - SC - Service Tax

NTT Govt has been directed to amend the National Tax Tribunal Act to ensure that only Chartered Accountant & Advocates would the eligible to represent the assessee and in case of difference of opinion the opinion of chief justice or his nominee would prevail.

Summary

Issues:
Constitutional validity of provisions of the National Tax Tribunal Act, 2005 challenged before the Supreme Court.

Analysis:
The Supreme Court addressed the challenge to the constitutional validity of various provisions of the National Tax Tribunal Act, 2005. The petitions from different High Courts, including Madras, Punjab & Haryana, Bombay, and Orissa, were transferred to the Supreme Court due to identical points raised. Several High Courts had issued interim orders restraining the establishment of the National Tax Tribunal under the Act. The Supreme Court considered the challenge, including Section 13 of the Act, which allows 'any person duly authorised' to appear before the Tribunal. The Union of India expressed willingness to make amendments to ensure only lawyers, Chartered Accountants, and party-in-person can appear before the Tribunal. The Court decided to hear the matter further post the proposed amendments to Section 13 or any other changes the Government deems necessary. Additionally, the challenge included Section 5(5) of the Act, concerning the transfer of Members between Benches, with the Union of India arguing for a broader interpretation of 'consultation' as 'concurrence' in line with judicial independence.

The challenge also extended to Section 7 of the Act, which establishes a selection committee comprising the Chief Justice of India or a Supreme Court Judge nominated by him, along with Secretaries from the Ministries of Law and Finance. Petitioners raised concerns about potential conflicting views within the selection committee, but the Government asserted the Chairperson's primacy within the committee structure. Furthermore, certain other provisions of the Act were contested by the petitioners. The Supreme Court indicated its intention to examine these matters post the Government's proposed amendments and subsequent mentioning of the cases.

The Court granted the Government the liberty to list the matters for further consideration once the necessary amendments to the Act were made. This approach allowed for a comprehensive review of the challenged provisions after potential modifications, ensuring a thorough assessment of the constitutional validity of the National Tax Tribunal Act, 2005.