Former Union minister of state for finance and tax expert Debi Prosad Pal had filed a writ petition on the issue.
In response, Justice Kalyan Jyoti Sengupta on November 6, has passed the restraint order for a limited period and slated the case for hearing today. The court today extended the stay until further orders.
Additional solicitor general S K Kapoor, appearing for the central government, opposed the interim order and argued that there was no violation of the provisions of the Constitution of India in issuing the ordinance. No case was made out by the petitioner for obtaining any relief.
Pal had argued that the ordinance which the President of India issued on October 16, 2003, bypassing the Parliament, should be quashed or set aside as it was ultra vires.
It was submitted by the central government that long line of cases relating to tax affairs was pending in the courts of law, so the constitution of Tax Tribunal was necessary for speedy disposal.
However, the counsel admitted that the infrastructure for establishing the new tribunal was yet to set up.
The petition challenged the validity of the NTTO, 2003. It was stated in the petition that there existed no emergent circumstances which necessitated the promulgation of the Ordinance taking away the power and jurisdiction of the High Courts in all revenue matters like income-tax, gift tax, customs, central excise and service tax.
