The Central Government introduced Bill in Lok Sabha to abolish five tribunals including Authority for Advance Rulings.
The government has proposed to wind up five tribunals namely Airport Appellate Tribunal, Authority for Advance Rulings, Intellectual Property Appellate Board, Appellate Tribunal under the Cinematograph Act, and Plant Varieties Protection Appellate Tribunal.
The Finance Minister in the Budget 2021 speech proposed abolishing the under-performing, authority of advance ruling, to replace it with a two-member board of advance ruling. It will be chaired by an officer, not below the rank of a chief commissioner. Advance rulings of such a board shall not be binding on the applicant or the department and could be appealed before the high court.
The government with a view to streamline tribunals, the Tribunals Reforms (Rationalisation and Conditions of Service) Bill, 2021 is proposed to be enacted to abolish certain tribunals and authorities and to provide a mechanism for filing appeal directly to the commercial court or the High Court, as the case may be.
The Bill proposes the transfer of all cases pending before such tribunals or authorities to the Commercial Court or the High Court on the appointed date.
The government observed that the tribunals only add to another additional layer of litigation, and having separate tribunal requires administrative action in terms of filling up of posts and such other matters, and any delay in such action further delays disposal of cases.
“Reducing the number of tribunals shall not only be beneficial for the public at large, reduce the burden on public exchequer, but also address the issue of shortage of supporting staff of tribunals and infrastructure,” the government said.
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