New Benches of CESTAT - Delhi Benches will become redundant?

By Vijay Kumar

NEW Benches of CESTAT are proposed at Hyderabad, Allahabad and Chandigarh. While the Hyderabad Bench may have jurisdiction over the States of Telangana and Andhra Pradesh, Allahabad may cover Uttar Pradesh and Uttarakhand. The Chandigarh Bench may have jurisdiction over Punjab, Haryana, Himachal Pradesh and J&K. Then what is left for Delhi? The city of Delhi and the States of Rajasthan, MP and Chattisgarh, from where very few cases come to the Tribunal. And Delhi has five Benches. So, it may result in too many benches with too few cases for Delhi while Allahabad and Chandigarh will inherit a huge pendency and burdened with too many cases.

The CESTAT Bar Association has sent a representation to the Finance Minister in this regard.

President of the Association, Mr. RK Jain in his letter requests the Finance Minister that the jurisdiction of the Delhi Benches should not be not be confined to city of Delhi, but should extend to NCR. He submits,

This will not only be equitable and practical but will also provide sufficient work for 5 Benches of CESTAT at New Delhi. If trade and industry of Ghaziabad and Noida is made to travel to Allahabad for just getting their Appeals decided by a Tax Tribunal, it would not only be expensive but strenuous, as compared to the present arrangement of hearing of their Tax Appeals at New Delhi, in close vicinity to their places. Similar is the position of Tax Payers in Faridabad and Gurgaon.

The Jurisdiction of Delhi Benches of the CESTAT may also be extended to the NCR. This will not only redress the grievance of the bar but also the Trade & Industry will be happy to have justice at their doorstep.

The large numbers of matters are likely to be transferred from CESTAT, New Delhi to Allahabad Bench and Chandigarh Bench. These new Benches thus would inherit huge pendency right from the initial days and it would not be prudent for their smooth functioning. Moreover, in most of such cases, the parties have already engaged lawyers at New Delhi, it would be ideal that cases in which Vakalatnama is already filed by a local lawyer at Delhi, these cases be retained at Delhi, if the appellant opts so. This will also save the trade and industry from the additional burden of re-engaging a new lawyer at the location of new Bench.

The Government is committed to provide justice to the taxpayers at their doorstep. Thus making the taxpayers at Ghaziabad, Noida, Gurgaon or Faridabad, to travel to Allahabad or Chandigarh instead of the present arrangement of settlement of their tax disputes at New Delhi, would be reversal of such policy. Sir, Yourself being an esteemed member of the Bar, are in better position to understand the difficulties of the Members of the Bar and the Trade & Industry.