Kolkata, Nov 06: The Calcutta High Court today stayed the implementation of an ordinance for establishment of national tax tribunal. Justice Kalyan Jyoti Sengupta, hearing a writ petition, granted an interim injunction, restraining the Central government from issuing any notification till November 11, when the matter would be heard again.
Challenging the constitutional validity of the ordinance, a writ petition by advocate Amar Nath Sen prayed for restrainment of the government of India from issuing any notification of the national tax tribunal and from taking any action in pursuance of the ordinance creating the tribunal.
The ordinance was promulgated on October 16.
Appearing for the petitioner, senior counsel Debi Prasad Pal contended that there existed no emergent circumstance which necessitated the promulgation of the ordinance when the winter session of the Parliament was likely to commence in the third week of November.
Pal submitted that the setting up of the tribunal would take away the power and jurisdiction of the high courts in all revenue matters, i.e., income tax, gift tax, customs, central excise and service taxes.
Pal also contended that the setting up of the tribunal and its constitution would "erode the independence of the judiciary, which is one of the basic structures of the Constitution and is therefore invalid and violates the constitutional guarantee of independence of the judiciary".
S Hazra, who appeared for the Union of India, opposed the writ. Bureau Report