Wednesday, December 7 2005 19:46 Hrs (IST) - World Time -

New Delhi: Decks were cleared today (Dec 07, 2005) for setting up the first-ever National Tax Tribunal in the country to deal with recovery of over Rs 100,000 crore entangled in tax disputes with Parliament approving the relevant bill without opposition.

The National Tax Tribunal Bill, 2005, already passed by Lok Sabha, was approved by Rajya Sabha by voice vote with most opposition members supporting it.

Replying to a debate on the Bill, Union Law Minister H R Bhardwaj said the Tribunal was being set up primarily to deal with appeals against orders of the Customs, Excise and Service Tax Tribunal and the Income Tax Appellate Tribunal.

Bharadwaj said the Tribunal was being set up as High Courts were not able to set up tax benches due to dearth of tax specialists as most judges were practitioners from civil side.

"Earlier, there was no problem in setting up such benches but now High Courts are unable to provide for these," he said adding due to pendency of a large number of cases, huge revenue was blocked in litigations adversely affecting the economy.

With the establishment of NTT, all matters and proceedings pending in appeals and references under direct tax laws and indirect tax laws before High Courts shall stand transferred to it.

A person who has been a judge of the Supreme Court or the Chief Justice of a High Court shall be the Chairperson of the National Tax Tribunal, the Minister said.