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Finance Ministry notifies Redrafted Rules governing the Tenure of various Appellate Tribunal Chairpersons and Members [Read Notification]

Appellate Tribunal - Finance Ministry - Redrafted Rules - Authority - Taxscan

The Ministry of Finance on February 12th has notified a new set of rules called the Tribunal, Appellate Tribunal, and other Authorities (Qualifications, Experience and other Conditions of Service of Members) Rules, 2020. The government has exercised its powers provided under section 184 of the Finance Act. A similar attempt was made by the government in 2017. But the Supreme Court struck down the move entirely and ordered the central government to reframe the rules back then as the constitutional validity was challenged on account of being introduced as a money bill.

The latest amendment to the qualifications and other service conditions for different tribunals associated with monetary disputes are as follows :

Name of Tribunal, Appellate Tribunal or Authority.

 

Qualification for appointment of Chairperson, Chairman, President, Vice-Chairperson, Vice-Chairman, Vice- President, Presiding Officer, Accountant Member, Administrative Member, Judicial Member, Expert Member or Technical Member or Member. Composition of Search-cum- Selection Committee

 

Income-tax Appellate Tribunal (ITAT) under the Income-tax Act, 1961 (43 of 1961)

 

1) A person shall not be qualified for appointment as President unless he is a sitting or retired Judge of a High Court and who has completed not less than seven years of service as a Judge in a High Court or a Vice-President of the Income-tax Appellate Tribunal (ITAT).

(2) The Central Government may appoint one or more members of the Income-tax Appellate Tribunal (ITAT) to be the Vice-President or, as the case may be, Vice-Presidents thereof.

(3) A person shall not be qualified for appointment as a Judicial Member, unless, ––

(a) he has, for a combined period of ten years, been a District Judge and Additional District Judge; or

(b) he has been a member of the Indian Legal Service and has held a post of Additional Secretary or any equivalent or higher post for two years; or

(c) he has been an advocate for twenty-five years.

(4) A person shall not be qualified for appointment as an Accountant Member, unless, ––

(i) he has for twenty-five years been in the practice of accountancy, –

(a) as a chartered accountant under the Chartered Accountants Act, 1949 (38 of 1949); or

(b) as a registered accountant under any law formerly in force; or partly as such registered accountant and partly as a chartered accountant; or

(ii) he has been a member of the Indian Revenue Service (Income-tax Service Group ̳A‘) and has held the post of Principal Commissioner of Income-tax or any equivalent or higher post for two years and has performed judicial, quasi-judicial or adjudicating function for three years.

 

Search-cum-Selection Committee for the post of the President, Vice- President, Accountant Member or Judicial Member

(i) Chief Justice of India or a Judge of the Supreme Court nominated by him – chairperson;

(ii) (a) In case of appointment of President, the Outgoing President, Income-tax Appellate Tribunal (ITAT) – member; or

(b) In case of appointment of Vice- President or Accountant Member of Judicial Member, the President, Income-tax Appellate Tribunal

-member ;

(iii) Secretary to the Government of India, Ministry of Law and Justice (Department of Legal Affairs) – member; and

(iv) Secretary to the Government of India, Ministry of Finance, (Department of Revenue)

– member.

 

The Customs, Excise and Service Tax Appellate Tribunal under the Customs Act, 1962 (52 of 1962)

 

(1) A person shall not be qualified for appointment as President unless, –

(a) he is or has been a Judge of a High Court and who has completed not less than seven years of service as a Judge in a High Court; or

(b) he is a member of the Appellate Tribunal.

(2) A person shall not be qualified for appointment as a Judicial Member, unless, –

(a) he has, for a combined period of ten years, been a District Judge and Additional District Judge; or

(b) he has been a member of the Indian Legal Service and has held a post of Additional Secretary or any equivalent or higher post for two years; or

(c) he has been an advocate for twenty-five years.

(3) A person shall not be qualified for appointment as a Technical Member unless he has been a member of the Indian Revenue Service (Customs and Central Excise Service Group ‘A’) and has held the post of Principal Commissioner of Customs or Central Excise or any equivalent or higher post for two years and has performed judicial, quasi-judicial or adjudicating function for three years.

            Search-cum-Selection Committee for the post of President, Judicial Member, and Technical Member-

(i) Chief Justice of India or a Judge of the Supreme Court nominated by him – chairperson;

(ii)(a) In case of appointment of President, the Outgoing President of the Customs Excise and Service Tax Appellate Tribunal – member; or

(b) In case of appointment of Judicial Member and Technical Member, the President, Customs and Excise and Service Tax Appellate Tribunal-member ;

(iii) Secretary to the Government of India, Ministry of Finance (Department of Revenue)- member;

(iv) Secretary to the Government of India, Ministry of Personnel, Public Grievances and Pensions (Department of Personnel and Training) -member.

 

 

Appellate Tribunal under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 (13 of 1976)

 

 

(1) The Chairman of the Appellate Tribunal shall be a person who is or has been a Judge of a Supreme Court or a Chief Justice of a High Court.

(2) The Member of the Appellate Tribunal shall be a person not below the rank of Additional Secretary to the Government of India or any equivalent or higher post for two years and has performed judicial, quasi-judicial or adjudicating function for three years.

 

 

Search-cum-Selection Committee for the post of Chairman and Member, –

(i) Chief Justice of India or a Judge of the Supreme Court nominated by him– chairperson;

(ii)(a) in case of appointment of Chairman, the Outgoing Chairman of the Appellate Tribunal – member; or

(b) in case of appointment of Member, the Chairman of the Appellate Tribunal-member;

(iii) Secretary to the Government of India, Ministry of Personnel, Public Grievances and Pensions (Department of Personnel and Training)- member;

(iv) Secretary to the Government of India, Ministry of Finance (Department of Revenue)- member.

 

National Company Law Appellate Tribunal under the Companies Act, 2013 (18 of 2013).

 

(1) The Chairperson shall be a person who is or has been a Judge of the Supreme Court or the Chief Justice of a High Court.

(2) A Judicial Member shall be a person who is or has been a Judge of a High Court or is a Judicial Member of the National Company Law Tribunal for five years.

(3) A Technical Member shall be a person of proven ability, integrity and standing to have special knowledge and professional experience, of not less than twenty-five years, in law, industrial finance, industrial management or administration, industrial reconstruction, investment, accountancy or any other matter which is useful to the National Company Law Appellate Tribunal.

 

 

Search-Cum-Selection Committee for the post of Chairperson, Judicial Member, and Technical Member –

(i) Chief Justice of India or any Judge of the Supreme Court nominated by him –chairperson;

(ii) (a) in case of appointment of Chairperson, the Outgoing Chairperson of the National Company Law Appellate Tribunal – member; or

(b) in case of appointment of Judicial Member and Technical Member the Chairperson of the National Company Law Appellate Tribunal – member; or

(iii) Secretary to the Government of India, Ministry of Corporate Affairs – member;

(iv) Secretary to the Government of India, Ministry of Finance (Department of Financial Services)– member.

Authority for Advance Ruling under the Income-tax Act, 1961 (43 of 1961)

 

A person shall be qualified for appointment as, –

(a) Chairman, who: –

(i) is, or has been, a Judge of the Supreme Court; or

(ii) is or has been a Chief Justice of a High Court.

(b) Vice-chairman, who is, or has been, a Judge of a High Court;

(c) Law Member, who has, for a combined period of ten years, been a District Judge and Additional District Judge; or

(d) Revenue Member from the Indian Revenue Service who is qualified to be a Member of the Central Board of Direct Taxes and an officer of the Indian Customs and Central Excise Service, who is qualified to be a Member of the Central Board of Excise and Customs and has performed judicial, quasi-judicial or adjudicating function for three years.

 

Search-cum Selection Committee for the post of Chairman, Vice- Chairman, Law Member, and Revenue Member –

(i) Chief Justice of India or any Judge of the Supreme Court nominated by him – chairperson;

(ii) (a) in case of appointment of Chairman, the Outgoing Chairman to the Authorities for Advance Ruling- member; or

(b) in case of appointment of Vice- Chairman, Law Member and Revenue Member, the Chairman to the Authorities for Advance Ruling- member;

(iii) Secretary to the Government of India, Ministry of Finance (Department of Revenue) – member; and

(iv) Secretary to the Government of India, Ministry of Personnel, Public Grievances and Pensions (Department of Personnel and Training) –member.

 

Securities Appellate Tribunal under the Securities Exchange Board of India Act, 1992 (15 of 1992)

 

(1) A person shall not be qualified for appointment as the Presiding Officer or a Judicial Member or a Technical Member of the Securities Appellate Tribunal unless he, —

(a) in the case of the Presiding Officer, is, or has been, a Judge of the Supreme Court or a Chief Justice of a High Court; or

(b) in the case of a Judicial Member, is, or has been, a Judge of a High Court; or

(c) in the case of a Technical Member,—

(i) is, or has been, an Additional Secretary for two years or Secretary in the Ministry or Department of the Central Government or any equivalent post in the Central Government or a State Government; or

(ii) is a person of proven ability, integrity and standing to have special knowledge and professional experience, of not less than twenty- five years, in financial sectors including securities market or pension funds or commodity derivatives or insurance.

(2) A Member or Part-time Member of the Board of the Insurance Regulatory and Development Authority or the Pension Fund Regulatory and Development Authority, or any person at senior management level equivalent to Executive Director in the Board or in such Authorities, shall not be appointed as Presiding Officer or Member of the Securities Appellate Tribunal, during his service or tenure as such with the Board or with such Authorities, as the case may be, or within two years from the date on which he ceases to hold office as such in the Board or in such Authorities.

(3) The Presiding Officer or Member of the Securities Appellate Tribunal shall be a person who does not have any financial or other interest as are likely to prejudicially affect their functions as such Presiding Officer or Member.

Search and Selection Committee for Post of the Presiding Officer, Judicial Member, and Technical Member.

(i) Chief Justice of India or Judge of the Supreme Court of India nominated by him

– chairperson;

(ii) (a) in case of appointment of Presiding Officer, the Outgoing Presiding Officer of the Securities Appellate Tribunal– member;

(b) in case of appointment of Judicial Member and Technical Member, the Presiding Officer of the Securities Appellate Tribunal– member; or

(iii) Secretary to the Government of India, Ministry of Finance, (Department of Economic Affairs) – member; and

(iv) Secretary to the Government of India, Ministry of Finance, (Department of Revenue) –member.

 

 

Debts Recovery Tribunal under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (51 of 1993)

 

 

A person shall not be qualified for appointment as Presiding Officer of the Debts Recovery Tribunal, unless he, is, or has been, a District Judge.

 

 

Search-cum-Selection Committee for the post of Presiding Officer of the Debts Recovery Tribunal, –

(i) Chief Justice of India or Judge of the Supreme Court nominated by him-chairperson;

(ii) Outgoing Presiding Officer of the Debts Recovery Tribunal

– member;

(iii) Secretary to the Government of India, Ministry of Finance (Department of Financial Services)- member; and

(v)Secretary to the Government of India, Ministry of Corporate Affairs – member.

 

Debts Recovery Appellate Tribunal under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (51 of 1993)

 

A person shall not be qualified for appointment as Chairperson, unless he, ––

(a) is, or has been, a Judge of a High Court; or

(b) has been a member of the Indian Legal Service and has held a post of Additional Secretary or any equivalent or any higher post for two years; or

(c) has held office as the Presiding Officer of a Debts Recovery Tribunal for three years.

 

Search-cum-Selection Committee for the Chairperson of the Debts Recovery Appellate Tribunal, –

(i) Chief Justice of India or any Judge of the Supreme Court as nominated by him – chairperson;

(ii) Outgoing Chairperson of the Debts Recovery Appellate Tribunal – member;

(ii) Secretary to the Government of India, Ministry of Finance (Department of Financial Services)– member;

(iv)Secretary to the Government of India, Ministry of Corporate Affairs – member.

 

To Read the full text of the Notification CLICK HERE
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