Silver jubilee of CESTAT - TIOL greets the Great Institution
Today, we just cannot imagine what would have been our plight if there was no CESTAT, but it is equally difficult to realise that this great institution is only twenty five years old. How was justice dispensed with in the pre CESTAT/CEGAT days? After the appellate commissioner, it was the Joint Secretary (review) in the Board, who was almost the final authority and who was not bound by any precedents, including his own orders and there were hardly any publications for reference. Of course the writ remedy to the High Court was always there, but looking at what this Tribunal has achieved in the last twenty five years, we just can't imagine the days when there was no Tribunal.
The Income Tax Appellate Tribunal was established in the year 1941 and the CEGAT came into existence a full 41 years later in 1982.
The idea behind a Tribunal is "Sulabh Nyay & Satwar Nyay' which means easy and quick justice. The USP of the Tribunal is supposed to be
1. Inexpensive;
2. Accessibility;
3. Freedom from technicalities
4. Expedition;
5. Expertise and knowledge of the particular subject.
If these are the Criteria for judging a Tribunal, perhaps our CESTAT has come out in flying colours.
The ITAT functions under the Law Ministry while the CESTAT is a subordinate office of the Revenue Department in the Finance Ministry!
Addressing the silver jubilee function of the ITAT, Chief justice AK Sarkar said,
There may be people who feel that the Tribunal is not in the full sense a judicial body / venture to think that none of them is an assessee. I also venture to think that such a notion is superficial and stems from the want of knowledge of the actual working of the Tribunal. The judges who preside over the Tribunal are capable men, men of character and integrity. The Ministry of Finance which is in charge of the collection of taxes has no control over that body or the Tribunal. The Tribunal is under the Ministry of Law for the purposes of administrative control only. That Ministry is not interested in the collection of taxes and does not exercise any control over the judicial work of the Tribunal. The independence of the members recruited to the Tribunal from the officers of the Income Tax Department is secured by so arranging things that they cannot look forward to anything from the Income Tax Department or the Ministry of Finance they cannot go back to higher posts in that Department."
The great Lawyer, PALKHIVALA said,
The Tribunal functions as a judicial body under the Ministry of law and is entirely beyond the control of the Income-tax Department. Happily, ii is fully insulated from the pressures and influences of both bureaucrats and politicians. The Tribunal has shown great independence and courage in deciding cases according to law and in consonance with justice, regardless of the stakes involved. In short, it has fulfilled the purpose for which it was brought into existence and fully justified the high expectations with which it was concerned.
Administrative justice demands compromise. There is no pre-determined solution to the problem of tempering power with justice. The Tribunal has rightly earned the reputation of tempering judicial power with justice. It has evolved an economical, quick and informal procedure for doing justice as between the State and the citizen, to great public satisfaction. In other words, it has acted as a Court of law in everything but name, while avoiding the regular process of civil law which is too cumbersome, technical and expensive?
Justice Y.V.ANJANEYULU said,
"Tax laws of this country constitute a bizarre piece of legislation which, even to a trained mind, cause considerable difficulties in unravelling the intricacies. Expertise merely in this complicated branch of tax law is not adequate unless an overall proficiency in other branches of law is possessed. Hindu law, Transfer of Property Act, Partnership Act, Contract Act, Mohammadan law and a host of other mercantile laws are closely and intimately connected with the administration of the tax laws in this country. Indeed, if one may say so, the Hindu law and Partnership law have considerably developed on account of the tax laws. It must be acknowledged that a high sense of objectivity prevails in the Tribunal and a feeling of confidence is created in the tax payers that their appeals are disposed of by the Tribunal without any fear or favour. It is this confidence that is generated in the tax-paying public that has largely contributed to the SUCCESS and leadership of the Income-tax Appellate Tribunal among the Administrative Tribunals in this country.
These observations are equally applicable to the CESTAT.
The CESTAT created by the Finance Act of 1980 started functioning only from 11th October, 1982. As is usually the case with the Finance Ministry, the Notification constituting the tribunal with effect from 11.10.1982 was issued on 12.10.1982. We should be happy that the Ministry still maintains the same consistency in issuing notifications for the last 25 years. Even after the notification, the Tribunal came into existence without a President. A President was appointed only in December, 1982.
In the last quarter of a century, the Tribunal established itself as a citadel of justice and temple of knowledge with highly talented members sitting on the benches and eminent advocates assisting in cracking complicated legal issues.
The present President, who is an eminent scholar and a respectable teacher of Law, has brought in revolutionary changes for elevating the status of the Tribunal.
Tomorrow, the Tribunal is having a function to celebrate its Silver Jubilee. We have no clue why it is celebrated on 6th October when the Tribunal was born on 11th October!
The Chief Justice of India and the FM are to attend the function. We wish the function a grand success and hope the CESTAT will continue its great task.
At the time of the inauguration of the CESTAT, the then Prime Minister, Indira Gandhi said,
We expect the Tribunal to provide speedy justice to assessees without harassment while keeping in view the importance of Government revenue.
And the then CJI, Chandrachud said,
I am sure the Tribunal will acquire high reputation in the matter of its decision and that the litigants will look upon it as an independent forum to which they can turn in trust and confidence
We will bring you more details in the days to come.