The Supreme Court today said there are "holes and gaps" in the legislation meant for setting up the National Tax Tribunal (NTT) which also lacks autonomy in its function.
"Once the NTT comes into existence, the prerogative of constituting the bench is with the central government, i.E. executives. The Chairman of the tribunal does not have the power to constitute the bench. Autonomy is fundamental," a five-judge Constitution Bench headed by Chief Justice R M Lodha said.
"There are holes and gaps in the Act for NTT," the bench, also comprising justices J S Khehar, J Chelameswar, A K Sikri and Rohinton Nariman, said while reserving its verdict on a batch of petitions challenging the setting up of NTT through National Tax Tribunal Act, 2005.
The bench, also said there cannot be any comparison with the model adopted in United Kingdom for dealing with the tax matters.
"UK has gone way ahead in tribunalisation. They have independent functioning," the bench observed.
The long hearing came to conclusion during which the Centre pressed Attorney General Mukul Rohatgi and Solicitor General Ranjit Kumar to defend the setting up of NTT.
They also provided data about cases pending in several tribunals across the country.
The Centre, from the beginning, faced tough questions to justify the setting up of NTT and the bench was repeatedly critical of the infrastructure and availability of suitable person to head it.
It has been contended in a batch of pleas that there was a grave danger that the judiciary will be substituted by a host of quasi-judicial tribunals which function as departments of various ministries.
