Can tribunal award cost

By Vijay Kumar

There is sharp division on the question. Let us restrict the issue to the two tax Tribunals, the ITAT and the CESTAT. One school of thought is that these Tribunals being creatures of the statutes like Income tax Act and Customs Act cannot go beyond the statutes and these statutes do not provide for awarding costs.

We will soon bring you an order of the ITAT wherein a CIT(A) in violation of judicial discipline refused to follow the decision of the Special Bench of the Tribunal, but Tribunal held that costs need not be given as the CIT(A) had not disregarded the Special Bench Decision with a view to harass the assessees and to cause any monetary or other loss.

Now can Tribunal award costs?

The CESTAT had awarded costs in a couple of cases. . The Investigation Commission under the chairmanship of Sir Srinivasa Vardhachariar was in favour of the Tribunal having the power to award costs in the appeals before it.

As per Section 254 (2B) of the Income Tax Act,

2B) The cost of any appeal to the Appellate Tribunal shall be at the discretion of that Tribunal

There is no similar provision under the Central Excise Act or the Customs Act.