The Hindu : Tamil Nadu News : Opposition flays move to abolish tax tribunal

Online edition of India's National Newspaper
Friday, Nov 19, 2004

Tamil Nadu

Tamil Nadu

Opposition flays move to abolish tax tribunal

By Our Special Correspondent

CHENNAI, NOV. 18. The Government's decision to abolish the Tamil Nadu Taxation Special Tribunal today drew criticism from the Opposition in the Assembly on the ground that it would pose immense hardship to taxpayers.

The Tamil Nadu Taxation Special Tribunal (Repeal) Bill, 2004 was introduced by the Minister for Education and Commercial Taxes, C.Ve.

Shanmugam.

`Wrong strategy'

The Congress Legislature Party leader, S.R. Balasubramonian, raising a Point of Order, opposed the Bill at the outset. He flayed the Government for not giving a detailed statement of objects and reasons for its move. Stressing the need for continuance of the forum for tax collection, he cautioned the Government against adopting the strategy of "running with hares and hunting with hounds."

The State earned an annual revenue of Rs.12,000 crores from Commercial Taxes (CT), he said. The Tribunal had a big role in ensuring the tax remittance. The forum disposed of cases in a short period, while it could take about nine years for the disposal of such cases in the High Court.

Allaying apprehensions over the Government's decision, the Finance Minister, C. Ponnaiyan, said the Tribunal was constituted under the Tamil Nadu Taxation Special Tribunal Act, 1992, in view of a large number of cases pending before the High Court then. Now, the appeals could be made directly before the High Court.

Mr. Shanmugam said when the Tribunal was formed, persons who came under the CT net could only move the Supreme Court in appeal seeking revision. Since the apex court had ruled in a case that remedy could be sought by the CT payers in the High Courts also, the purpose of the constitution of the Tribunal was defeated. At present, 5,620 cases were pending before the Tribunal. The appeals were being used as a "ruse" to evade tax or delay tax remittance.

However, persons under the CT net could go in appeal to the High Court only after remitting 25 per cent of the tax amount, he added.

The Bill, introduced on Wednesday, was passed in the Assembly after the debate.

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