THE NATIONAL TAX TRIBUNAL ACT, 2005 
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ARRANGEMENT OF SECTIONS 
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CHAPTER I 

PRELIMINARY 

SECTIONS 

1.  Short title, extent and commencement. 
2.  Definitions. 

CHAPTER II 

ESTABLISHMENT OF THE NATIONAL TAX TRIBUNAL 

3.  Establishment of National Tax Tribunal. 
4.  Composition of National Tax Tribunal. 
5.  Constitution and jurisdiction of Benches. 
6.  Qualifications for appointment of Chairperson and other Members. 
7.  Appointment of Chairperson and other Members. 
8.  Terms of office of Chairperson and other Members. 
9.  Resignation of Chairperson and other Members. 
10.  Salary and allowances. 
11.  Removal and suspension of Chairperson and other Members. 
12.  Officers and employees of National Tax Tribunal. 
13.  Appearances before National Tax Tribunal. 
14.  Member to act as Chairperson or to discharge his functions in certain circumstances. 

JURISDICTION, POWERS AND FUNCTIONS OF NATIONAL TAX TRIBUNAL 

CHAPTER III 

15.  Appeal to National Tax Tribunal. 
16.  Procedure and powers of National Tax Tribunal. 
17.  Finality of orders of National Tax Tribunal. 
18.  Decision by majority. 
19.  Special Bench. 
20.  Interim order. 
21.  Power to punish for contempt. 
22.  Order of National Tax Tribunal. 
23.  Transfer of pending cases from High Court. 
24.  Appeal to Supreme Court. 

CHAPTER VI 

MISCELLANEOUS 

25.  Members, etc., to be public servants. 
26.  Protection of action taken in good faith. 
27.  Power to remove difficulties. 
28.  Power to make rules. 
29.  Laying of rules before Parliament. 
30.  Consequential amendments. 

THE SCHEDULE. 

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1[THE NATIONAL TAX TRIBUNAL ACT, 2005] 

ACT NO. 49 OF 2005 

[20th December, 2005.] 

An Act to provide for the adjudication by the National Tax Tribunal of disputes with respect to 
levy,  assessment,  collection  and  enforcement  of  direct  taxes  and  also  to  provide  for  the 
adjudication  by  that  Tribunal  of  disputes  with  respect  to  the  determination  of  the  rates  of 
duties of customs and central excise on goods and the valuation of goods for the purposes of 
assessment of such duties as well as in matters relating to levy of tax on service, in pursuance 
of article 323B of the Constitution and for matters connected therewith or incidental thereto. 

BE it enacted by Parliament in the Fifty-sixth Year of the Republic of India as follows:— 

CHAPTER I 

PRELIMINARY 

1. Short title, extent and commencement.—(1) This Act may be called the National Tax Tribunal 

Act, 2005. 

(2) It extends to the whole of India. 
(3)  It  shall  come  into  force  on  such  date2  as  the  Central  Government  may,  by  notification  in  the 

Official Gazette, appoint: 

Provided that different dates may be appointed for different provisions of this Act and any reference 
in any such provision to the commencement of this Act shall be construed as a reference to the coming 
into force of that provision. 

2. Definitions.—In this Act, unless the context otherwise requires,— 

(a) “Bench” means a Bench of the National Tax Tribunal; 

(b)  “Board  of  Direct  Taxes”  means  the  Central  Board  of  Direct  Taxes  constituted  under  the 

Central Boards of Revenue Act, 1963 (54 of 1963); 

(c) “Board of Excise and Customs” means the Central Board of Excise and Customs constituted 

under the Central Boards of Revenue Act, 1963 (54 of 1963); 

(d) “Central Excise Act” means the Central Excise Act, 1944 (1 of 1944); 

(e) “Central Excise Tariff Act” means the Central Excise Tariff Act, 1985 (5 of 1986); 

(f) “Chairperson” means the Chairperson of the National Tax Tribunal; 

(g)  “Companies 

(Profits)  Surtax  Act”  means 

the  Companies 

(Profits)  Surtax  Act,                            

1964 (7 of 1964); 

(h) “Customs Act” means the Customs Act, 1962 (52 of 1962); 

(i)  “Customs,  Excise  and  Service  Tax  Appellate  Tribunal”  means  the  Customs,  Excise  and 
Service Tax Appellate Tribunal constituted under section 129 of the Customs Act, 1962 (52 of 1962); 

(j) “Customs Tariff Act” means the Customs Tariff Act, 1975 (51 of 1975); 

(k) “Expenditure-tax Act” means the Expenditure-tax Act, 1987 (35 of 1987); 

(l) “Gift-tax Act” means the Gift-tax Act, 1958 (18 of 1958); 

(m) “Income-tax Act” means the Income-tax Act, 1961 (43 of 1961); 

1. This Act has been struck down by the Supreme Court’s Order dated 25th September, 2014 in the Madras Bar Association Vs. 

Union of India. 

2. 28th December, 2005, vide notification No. S.O. 1826(E), dated 28 December, 2005, see Gazette of India, Extraordinary, Part 

II, sec. 3(ii). 

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(n) “Income-tax Appellate Tribunal” means the Income-tax Appellate Tribunal constituted under 

section 252 of the Income-tax Act, 1961 (43 of 1961); 

(o) “Interest-tax Act” means the Interest-tax Act, 1974 (45 of 1974); 

(p)  “law  officer”  means  the  Attorney-General  for  India,  the  Solicitor  General  of  India  or  the 

Additional Solicitor General of India; 

(q) “Member” means a Member of the National Tax Tribunal and includes the Chairperson; 

(r) “National Tax Tribunal” means the National Tax Tribunal established under section 3; 

(s) “notification” means a notification published in the Official Gazette; 

(t) “prescribed” means prescribed by rules made under this Act; 

(u) “Supreme Court” means the Supreme Court of India; 

(v) “Wealth-tax Act” means the Wealth-tax Act, 1957 (27 of 1957); 

(w)  words  and  expressions  used  in  this  Act  but  not  defined  herein  and  defined  in  the  Central 
Excise  Act,  the  Central  Excise  Tariff  Act,  the  Customs  Act,  the  Customs  Tariff  Act  (hereinafter 
referred  to  as  the  indirect  taxes)  or  the  rules  made  thereunder  or  in  Chapter  V  of  the  Finance  Act, 
1994 (32 of 1994) shall have the meanings, respectively, assigned to them in the said Acts or the rules 
made thereunder; 

(x) words and expressions used in this Act but not defined herein and defined in the Income-tax 
Act,  the  Wealth-tax  Act,  the  Gift-tax  Act,  the  Expenditure-tax  Act,  the  Interest-tax  Act  or  the 
Companies  (Profits)  Surtax  Act  (hereinafter  referred  to  as  the  direct  taxes)  or  the  rules  made 
thereunder shall have the meanings, respectively, assigned to them in the said Acts or the rules made 
thereunder.  

CHAPTER II 

ESTABLISHMENT OF THE NATIONAL TAX TRIBUNAL 

3. Establishment of National Tax Tribunal.—The Central Government shall, by notification in the 
Official Gazette, establish with effect from such date as may be specified  therein, a Tax Tribunal to be 
known as the National Tax Tribunal to exercise the jurisdiction, powers and authority conferred on such 
Tribunal by or under this Act. 

4.  Composition  of  National  Tax  Tribunal.—The  National  Tax  Tribunal  shall  consist  of  a 
Chairperson and such number of Members as the Central Government deems fit, to be appointed by that 
Government, by notification in the Official Gazette. 

5.  Constitution  and  jurisdiction  of  Benches.—(1)  The  jurisdiction  of  the  National  Tax  Tribunal 

may be exercised by the Benches thereof to be constituted by the Chairperson. 

(2) The Benches of the National Tax Tribunal shall ordinarily sit at any place in the National Capital 
Territory  of  Delhi  or  such  other  places  as  the  Central  Government  may,  in  consultation  with  the 
Chairperson, notify: 

Provided that the Chairperson may for adequate reasons permit a Bench to hold its temporary sitting 

for a period not exceeding fifteen days at a place other than its ordinary place of seat. 

(3) The  Central  Government  shall  notify  the  areas in  relation to  which  each  Bench  of the  National 

Tax Tribunal may exercise its jurisdiction. 

(4) The Central Government shall determine the number of Benches and each Bench shall consist of 

two members. 

(5)  The  Central  Government  may  1***  transfer  a  Member  from  headquarters  of  one  Bench  in  one 
State  to  the  headquarters  of  another  Bench  in  another  State  or  to  the  headquarters  of  any  other  Bench 
within a State: 

2[Provided that no Member shall be transferred without the concurrence of the Chairperson.] 

1. The words “in consultation with the Chairperson” omitted by Act 18 of 2007, s. 2 (w.e.f. 29-1-2007). 
2. Ins. by s. 2. ibid. (w.e.f. 29-1-2007). 

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6. Qualifications for appointment of Chairperson and other Members.—(1) The Chairperson of 
the  National  Tax  Tribunal  shall  be  a  person  who  has  been  a  Judge  of  the  Supreme  Court  or  the  Chief 
Justice of a High Court. 

(2) A person shall not be qualified for appointment as Member unless he— 

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

(b) is, or has been, a Member of the Income-tax Appellate Tribunal or of the Customs, Excise and 

Service Tax Appellate Tribunal for at least 1[five years]. 

7. Appointment of Chairperson and other Members.—(1) Subject to the provisions of sub-section 

(2), the Chairperson and every other Member shall be appointed by the Central Government. 

(2)  The  Chairperson  and  the  other  Members  shall  be  appointed  by  the  Central  Government  on  the 

recommendations of a Selection Committee consisting of— 

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

(b) the Secretary in the Ministry of Law and Justice (Department of Legal Affairs); 

(c) the Secretary in the Ministry of Finance (Department of Revenue). 

(3) No appointment of the Chairperson or of any other Member shall be invalidated merely by reason 

of any vacancy or any defect in the constitution of the Selection Committee. 

8. Terms of office of Chairperson and other Members.—The Chairperson and every other Member 
shall hold office as such for a term of five years from the date on which he enters upon his office but shall 
be eligible for re-appointment: 

Provided that no Chairperson or other Member shall hold office as such after he has attained,— 

(a) in the case of Chairperson, the age of sixty-eight years; and 

(b) in the case of any other Member, the age of sixty-five years. 

9. Resignation of Chairperson and other Members.—The Chairperson or any other Member may, 

by notice in writing under his hand addressed to the Central Government, resign his office. 

10. Salary and allowances.—(1) Subject to the provisions of this Act, the salary and allowances and 
other  terms  and  conditions  of  the  Chairperson  shall  be  the  same  as  applicable  to  a  sitting  Judge  of  the 
Supreme Court, but no vacation shall be allowed: 

Provided that if a person who, immediately before the date of assuming the office as the Chairperson 
was  in  receipt  of  or  being  eligible  so  to  do,  had  elected  to  draw,  a  pension  in  respect  of  any  previous 
service  or  office  held  by  such  person  under  the  Government  of  the  Union  or  of  a  State,  his  salary  in 
respect of service as Chairperson shall be reduced by the amount of that pension. 

Explanation.—For the purposes of this sub-section, “vacation” shall have the meaning assigned to it 

in the Supreme Court Judges (Conditions of Service) Act, 1958 (41 of 1958). 

(2)  A  Member  shall  draw  salary  of  a  High  Court  Judge  and  other  allowances  and  the  terms  and 

conditions of his service shall be the same as applicable to a Secretary to the Government of India: 

Provided that if a person who, immediately before the date of assuming the office as Member was in 
receipt of, or being eligible so to do, had elected to draw, a pension in respect of any previous service held 
by such person in connection with the affairs of the Union or of a State, his salary in respect of service as 
Member shall be reduced to the extent of that pension. 

(3) The salary and allowances and other terms and conditions of service of Chairperson or a Member 

of the Tribunal shall not be varied to his disadvantage after appointment. 

11. Removal and suspension of Chairperson and other Members.—(1) The Central Government 
may, in consultation with the Chief Justice of India, remove from office the Chairperson or any Member 
who— 

1. Subs. by Act 18 of 2007, s. 3, for “seven years” (w.e.f. 29-1-2007). 

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(a) has been adjudged an insolvent; or 

(b) has been convicted of an offence which, in the opinion of the Central Government, involves 

moral turpitude; or 

(c) has become physically or mentally incapable of acting as such Chairperson or Member of the 

National Tax Tribunal; or 

(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as 

the Chairperson or a Member of the National Tax Tribunal; or 

(e)  has  so  abused  his  position  as  to  render  his  continuance  in  office  prejudicial  to  the  public 

interest. 

(2) The Chairperson or any other Member shall not be removed from his office except by an order 
made  by  the  Central  Government  on  the  ground  of  proved  misbehaviour  or  incapacity  after  an  inquiry 
made by a Judge of the Supreme Court in which such Chairperson or Member had been informed of the 
charges against him and given a reasonable opportunity of being heard in respect of those charges. 

(3)  The  Central  Government  may  suspend  from  office  the  Chairperson  or  any  other  Member  in 
respect of whom a reference of conducting an inquiry has been made to the Judge of the Supreme Court 
under sub-section (2) until the Central Government has passed orders on receipt of the report of the Judge 
of the Supreme Court on such reference. 

(4)  The  Central  Government  may,  by  rules,  regulate  the  procedure  for  the  investigation  of 

misbehaviour or incapacity of the Chairperson or a Member referred to in sub-section (2). 

12. Officers and employees of National Tax Tribunal.—(1) The Central Government shall provide 

the National Tax Tribunal with such officers and employees as it may deem fit. 

(2)  The  salaries  and  allowances  and  other  conditions  of  service  of  officers  and  employees  of  the 

National Tax Tribunal shall be such as may be prescribed. 

(3) The officers and employees of the National Tax Tribunal shall discharge their functions under the 

general superintendence of the Chairperson. 

(4) The officers and the other employees shall be appointed on the recommendations of a Selection 

Committee constituted by the Central Government. 

13. Appearance before National Tax Tribunal.—(1) A party to an appeal other than Government 
may either appear in person or authorise one or more chartered accountants or legal practitioners 1*** to 
present his or its case before the National Tax Tribunal. 

(2) The Government may authorise one or more legal practitioners or any of its officers to present its 

case before the National Tax Tribunal. 

Explanation.—For the purposes of this section,— 

(a) “chartered accountant” means a chartered accountant as defined in clause (b) of sub-section 
(1)  of  section  2  of  the  Chartered  Accountants  Act,  1949  (38  of  1949)  and  who  has  obtained  a 
certificate of practice under sub-section (1) of section 6 of that Act; 

(b)  “legal  practitioner”  means  an  advocate,  a  vakil  or  any  attorney  of  any  High  Court,  and 

includes a pleader in practice. 

14.  Member 

to  act  as  Chairperson  or 

to  discharge  his 

functions 

in  certain              

circumstances.—(1) In the event of any vacancy in the office of the Chairperson by reason of his death, 
resignation  or  otherwise,  the  Central  Government  may  designate  the  senior-most  Member  to  act  as  the 
Chairperson until the day on which a Chairperson, appointed in accordance with the provisions of this Act 
to fill such vacancy, enters upon his office. 

1. The words “or any person duly authorised by him or it” omitted by Act 18 of 2007, s. 4 (w.e.f. 29-1-2007). 

5 

 
                                                           
(2) When the Chairperson is unable to discharge his functions owing to absence, illness or any other 
cause, the Central Government may authorise the senior-most Member to discharge the functions of the 
Chairperson until the date on which the Chairperson resumes his duties. 

(3) The senior-most member designated to act under sub-section (1) or to discharge functions of the 
Chairperson under sub-section (2), of the Chairperson shall continue to draw salary and allowances of a 
Member. 

JURISDICTION, POWERS AND FUNCTIONS OF NATIONAL TAX TRIBUNAL 

CHAPTER III 

15. Appeal to National Tax Tribunal.—(1) An appeal shall lie to the National Tax Tribunal from 
every order passed in appeal by the Income-tax Appellate Tribunal and the Customs, Excise and Service 
Tax  Appellate  Tribunal,  if  the  National  Tax  Tribunal  is  satisfied  that  the  case  involves  a  substantial 
question of law. 

(2)  The  Chief  Commissioner  or  the  Commissioner  of  Income-tax  or  the  Chief  Commissioner  or 
Commissioner of Customs and Central Excise, as the case may be, or an assessee aggrieved by any order 
passed  by  the  Income-tax  Appellate  Tribunal  or  any  person  aggrieved  by  any  order  passed  by  the 
Customs, Excise and Service Tax Appellate Tribunal (hereinafter referred to as aggrieved person), may 
file an appeal to the National Tax Tribunal and such appeal under this sub-section shall— 

(a)  be  filed  within  one  hundred  and  twenty  days  from  the  date  on  which  the  order  appealed 
against  is  received  by  the  assessee  or  the  aggrieved  person  or  the  Chief  Commissioner  or 
Commissioner, as the case may be; 

(b) be in the form of a memorandum of appeal precisely stating therein the substantial question of 

law involved; and 

(c) be accompanied by such fees as may be prescribed: 

Provided that separate form of memorandum of appeal shall be filed for matters involving direct and 

indirect taxes: 

Provided further that the National Tax Tribunal may entertain the appeal within sixty days after the 
expiry of the said period of one hundred and twenty days, if it is satisfied that the appellant was prevented 
by sufficient cause from preferring an appeal in time. 

(3) Where an appeal is admitted under sub-section (1), the National Tax Tribunal— 

(a) shall formulate the question of law for hearing the appeal; and 

(b) may also determine any relevant issue in connection with the question so formulated— 

(i)  which  has  not  been  so  determined  by  the  Income-tax  Appellate  Tribunal  or  by  the 

Customs, Excise and Service Tax Appellate Tribunal; or 

(ii)  which  has  been  wrongly  determined  by  the  Income-tax  Appellate  Tribunal  or  by  the 

Customs, Excise and Service Tax Appellate Tribunal, 

and shall decide the question of law so formulated and the other relevant issue so determined and deliver 
such judgment thereon containing the grounds on which such decision is founded and may award such 
cost as it deems fit. 

(4) Where in any appeal under this section, the decision of the Income-tax Appellate Tribunal or the 
Customs,  Excise  and  Service  Tax  Appellate  Tribunal  involves  the  payment  of  any  tax  or  duties,  the 
assessee or the aggrieved person, as the case may be, shall not be allowed to prefer such appeal unless he 
deposits  at  least  twenty-five  per  cent.  of  such  tax  or  duty  payable  on  the  basis  of  the  order  appealed 
against: 

Provided that where in a particular case the National Tax Tribunal is of the opinion that the deposit of 
tax or duty under this sub-section would cause undue hardship to such person, it may dispense with such 
deposit subject to such conditions as it may deem fit to impose so as to safeguard the interest of revenue. 

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16. Procedure and powers of National Tax Tribunal.—(1) The National Tax Tribunal shall not be 
bound by the procedure laid down by the Code of Civil Procedure, 1908 (5 of 1908) but shall be guided 
by the principles of natural justice. 

(2)  Subject  to  the  other  provisions  of  this  Act,  the  National  Tax  Tribunal  shall  have  powers  to 

regulate its own procedure. 

(3) The National Tax Tribunal shall have, for the purposes of discharging its functions under this Act, 
the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908) while 
trying a suit, in respect of the following matters, namely:— 

(a) requiring the discovery and production of books of account and other documents; 

(b)  subject  to  the  provisions  of  sections  123  and  124  of  the  Indian  Evidence  Act,                             

1872 (1 of 1872), requisitioning any public record or document or a copy of such record or document, 
from any office; 

(c) dismissing an appeal for default or deciding it, ex parte; 

(d)  setting  aside  any  order  of  dismissal  of  any  appeal  for  default  or  any  order  passed  by  it,                

ex parte; 

(e) rectifying any mistake or error apparent on the face of record; and 

(f) any other matter which may be prescribed. 

(4)  All  proceedings  before  the  National  Tax  Tribunal  shall  be  deemed  to  be  judicial  proceedings 
within the meaning of sections 193 and 228 and for the purposes of section 196 of the Indian Penal Code 
(45 of 1860) and the National Tax Tribunal shall be deemed to be a civil court for the purposes of section 
195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974). 

17. Finality of orders of National Tax Tribunal.—Any order passed by the National Tax Tribunal 
shall  be  final  and  shall  be  given  effect  to  accordingly  and  no  civil  court  shall  have  or  be  entitled  to 
exercise  any  jurisdiction,  power  or  authority  with  respect  to  any  of  the  matters  falling  within  the 
jurisdiction of the National Tax Tribunal. 

18. Decision by majority.—If the Members of a Bench consisting of two Members differ in opinion 
on  any  point,  they  shall  state  the  point  or  points  on  which  they  differ,  and  make  a  reference  to  the 
Chairperson, who shall hear the point or points himself or nominate any other Member for such hearing 
and such point or points shall be decided according to the opinion of the majority, who have heard the 
case including those who first heard it. 

19. Special Bench.—Where a judgment pronounced on a question of law by a Bench subsequently 
comes up for hearing before any Bench, and the latter Bench is of the opinion that the question of law 
requires reconsideration, then the latter Bench shall make a reference  to the Chairperson to constitute a 
Special Bench consisting of five Members to hear and decide such question of law. 

20. Interim order.—Notwithstanding anything contained in any other provisions of this Act or any 
other law for the time being in force, no interim order (whether by way of injunction or stay or otherwise) 
shall be made in relation to any appeal under this Act, unless— 

(a)  copies  of  such  appeal  and  all  documents  in  support  of  the  plea  for  such  interim  order  are 

furnished to the party against whom the appeal is preferred; and 

(b) opportunity is given to such party to be heard in the matter. 

21. Power to punish for contempt.—The National Tax Tribunal shall have and exercise the same 
jurisdiction, powers and authority in respect of contempt of itself as the High Court has and may exercise  

7 

 
 
such power or authority, for this purpose under the provisions of the Contempt of Courts Act, 1971 (70 of 
1971), which shall have effect subject to the modification that— 

(a)  any  reference  therein  to  a  High  Court  shall  be  construed  as  including  a  reference  to  the 

National Tax Tribunal; 

(b) any reference to the Advocate General in section 15 of the said Act shall be construed as a 

reference to such law officer as the Central Government may specify in this behalf: 

Provided that such matters shall be heard by a Special Bench consisting of five Members constituted 

by the Chairperson. 

22. Order of National Tax Tribunal.—The National Tax Tribunal may, after giving the parties to 

any proceedings before it, an opportunity of being heard, pass such orders thereon as it thinks fit. 

23.  Transfer  of  pending  cases  from  High  Court.—(1)  On  and  from  such  date  as  the  Central 
Government may, by notification, specify, all matters and proceedings including appeals and references 
under the direct taxes and indirect taxes pending before any High Court immediately before that date shall 
stand transferred to the National Tax Tribunal. 

(2) Where any matter or proceeding including appeals and references stand transferred from the High 

Court to the National Tax Tribunal under sub-section (1),— 

(a) the High Court shall, as soon as may be after such transfer, forward the records pertaining to 

such matter or proceeding to the National Tax Tribunal; 

(b) the National Tax Tribunal shall, on receipt of such records, proceed to deal with such matter 
or proceeding from the stage at which it is transferred or from an earlier stage or de novo as it may 
deem fit; 

(c) the Chairperson shall constitute a Bench consisting of such number of Members as he deems 

fit for hearing cases transferred under this section. 

24. Appeal to Supreme Court.—Any person including any department of the Government aggrieved 
by any decision or order of the National Tax Tribunal may file an appeal to the Supreme Court within 
sixty days from the date of communication of the decision or order of the National Tax Tribunal to him: 

Provided that the Supreme Court may, if it is satisfied that the appellant was prevented by sufficient 
cause from filing the appeal within the said period, allow it to be filed within such time as it may deem fit. 

CHAPTER IV 

MISCELLANEOUS 

25.  Members,  etc.,  to  be  public  servants.—The  Chairperson,  Members  and  other  officers  and 
employees  of  the  National  Tax  Tribunal  shall  be  deemed  to  be  public  servants  within  the  meaning  of 
section 21 of the Indian Penal Code (45 of 1860). 

26. Protection of action taken in good faith.—No suit, prosecution or other legal proceedings shall 
lie  against  the  National  Tax  Tribunal  or  its  Chairperson,  Member,  officer  or  other  employee  in  the 
discharge of any function for any loss or damage caused or likely to be caused by any act which is, in 
good faith, done or intended to be done in the discharge of any function under this Act. 

27. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of 
this Act, the Central Government may, by order published in the Official Gazette, make such provisions, 
not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for removing 
the difficulty: 

Provided  that  no  such  order  shall  be  made  after  the  expiry  of  a  period  of  two  years  from  the 

commencement of this Act. 

(2) Every order made under this section shall, as soon as may be, after it is made, be laid before each 

House of Parliament. 

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28. Power  to  make rules.—(1) The  Central  Government  may,  by  notification,  make  rules  to  carry 

out the provisions of this Act. 

(2) Without prejudice to the generality of the foregoing power, such rules may provide for all or any 

of the following matters, namely:— 

(a)  the  procedure  under  sub-section  (4)  of  section  11  for  the  investigation  of  charges  of 

misbehaviour or incapacity against the Chairperson or other Members; 

(b) the salaries and allowances and other conditions of service of officers and other employees of 

the National Tax Tribunal under sub-section (2) of section 12; 

(c) the amount of fees payable under clause (c) of sub-section (2) of section 15; 

(d) the other matters in respect of which the National Tax Tribunal may exercise the powers of a 

civil court under clause (f) of sub-section (3) of section 16; 

(e) any other matter which may be prescribed or in respect of which rules are required to be made 

by the Central Government. 

29. Laying of rules before Parliament.—Every rule made under this Act by the Central Government 
shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session for 
a total period of thirty days which may be comprised in one session or in two or more successive sessions 
and  if,  before  the  expiry  of  the  session  immediately  following  the  session  or  the  successive  sessions 
aforesaid, both Houses agree in making any  modification in the rule or both Houses agree that the rule 
should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as 
the case may be; so, however, that any such modification or annulment shall be without prejudice to the 
validity of anything previously done under that rule. 

30.  Consequential  amendments.—On  and  from  such  date  as  the  Central  Government  may,  by 
notification,  specify,  the  enactments  mentioned  in  the  Schedule  shall  stand  amended  in  the  manner 
specified therein. 

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THE SCHEDULE 

(See section 30) 

AMENDMENT OF CERTAIN ENACTMENTS 

PART I 

AMENDMENTS TO THE INCOME-TAX ACT, 1961 

(43 OF 1961) 

1. In section 2, after clause (29C), the following clause shall be inserted, namely:— 

'(29D) “National Tax Tribunal” means the National Tax Tribunal established under section 3 of 

the National Tax Tribunal Act, 2005;’. 

2. In Chapter XX,— 

(i) in section 254, in sub-section (4), for the words, figures and letter “Save as provided in section 
256  or  section  260A”,  the  words  and  figures  “Save  as  provided  in  the  National  Tax  Tribunal  Act, 
2005” shall be substituted; 

(ii) sub-heading “C.—Reference to High Court” and sections 256, 258 and 259 shall be omitted; 

(iii) for section 260, the following section shall be substituted, namely:— 

“260. Effect to the decisions of Supreme Court and of the National Tax Tribunal.—(1) The 
Supreme  Court  upon  hearing  any  reference  made  to  it  by  the  Appellate  Tribunal  under  section 
257  shall  decide  the  question  of  law  raised  therein,  and  shall  deliver  its  judgment  thereon 
containing the grounds on which such decision is founded, and a copy of the judgment shall be 
sent under the seal of the Court and the signature of the Registrar to the Appellate Tribunal which 
shall pass such orders as are necessary to dispose of the case conforming to such judgment. 

(2) Where the National Tax Tribunal delivers a judgment in an appeal filed before it or in any 
matter  transferred  to  it  under  the  National Tax Tribunal  Act,  2005,  effect  shall  be  given  to  the 
order of that Tribunal by the assessing officer on the basis of certified copy of the judgment. 

(3) The cost of any reference to the Supreme Court which shall not include the fee for making 

the reference shall be at the discretion of the Court.”; 

(iv) in section 260A, in sub-section (1), after the words “order passed in appeal by the Appellate 
Tribunal”,  the  words  “before  the  date  of  establishment  of  the  National  Tax  Tribunal”  shall  be 
inserted; 

(v) in section 261, after the words “any judgment of the High Court delivered”, the words “before 

the establishment of the National Tax Tribunal” shall be inserted; 

(vi)  in  section  263,  in  sub-section  (3),  after  the  words  “the  Appellate  Tribunal,”,  the  words 

“National Tax Tribunal,” shall be inserted; 

(vii)  in  section  264,  in  sub-section  (7),  after  the  words  “the  Appellate  Tribunal,”,  the  words 

“National Tax Tribunal,” shall be inserted. 

PART II 

AMENDMENTS TO THE WEALTH-TAX ACT, 1957 

(27 OF 1957) 

1. In section 2, after clause (lc), the following clause shall be inserted, namely:— 

'(ld) “National Tax Tribunal” means the National Tax Tribunal established under section 3 of the 

National Tax Tribunal Act, 2005;'. 

2.  In  section  25, in  sub-section  (4),  after  the  words  “Appellate  Tribunal,” the  words  “National Tax 

Tribunal” shall be inserted. 

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3. In section 27A,— 

(i) in sub-section (1), after the words and figures “file on or after the 1st day of October, 1998”, 

the words “but before the date of establishment of the National Tax Tribunal” shall be inserted; 

(ii) in sub-section (2), after the words “An appeal shall lie to the High Court”, the words “before 

the date of establishment of the National Tax Tribunal” shall be inserted. 

4. In section 29, in sub-section (1), after the words “any judgment of the High Court delivered”, the 

words “before the date of establishment of the National Tax Tribunal” shall be inserted. 

5. In section 29A, after the words “preferred to the Supreme Court”, the words and figures “under this 

Act before the commencement of the National Tax Tribunal Act, 2005” shall be inserted. 

PART III 

AMENDMENTS TO THE EXPENDITURE-TAX ACT, 1987 

(35 OF 1987) 

1. In section 13, in sub-section (4), for the words “or any order of a High Court”, the words “or any 

order of the National Tax Tribunal or of a High Court” shall be substituted. 

2.  In  section  21,  in  sub-section  (7),  after  the  words  “Appellate  Tribunal,”,  the  words  “the  National 

Tax Tribunal,” shall be inserted. 

PART IV 

AMENDMENTS TO THE INTEREST-TAX ACT, 1974 

(45 OF 1974) 

1. In section 19, in sub-section (3), after the words “the Appellate Tribunal”, the words “the National 

Tax Tribunal” shall be inserted. 

2. In section 20, in sub-section (7), for the words “Appellate Tribunal, the High Court or the Supreme 
Court”, the words “Appellate Tribunal, the National Tax Tribunal, the High Court or the Supreme Court” 
shall be substituted. 

PART V 

AMENDMENT TO THE FINANCE (NO. 2) ACT, 1998 

(21 OF 1998) 

In section 76, in sub-section (1), the words, figures, letter and brackets “sections 23, 23A, 24, 25, 28 
and 29 of the Wealth-tax Act as amended and section 27A as inserted by the Finance (No. 2) Act, 1998”, 
the words, figures and letter “sections 23, 23A, 24 and 25 of the Wealth-tax Act” shall be substituted. 

PART VI 

AMENDMENTS TO THE CUSTOMS ACT, 1962 

(52 OF 1962) 

1. In section 2, after clause (30), the following clause shall be inserted, namely:— 

'(30A) “National Tax Tribunal” means the National Tax Tribunal established under section 3 of 

the National Tax Tribunal Act, 2005,'. 

2. In section 27, in sub-section (3), after the words  “Appellate Tribunal”, the words  “, the National 

Tax Tribunal” shall be inserted. 

3. In section 27A, in the Explanation, after the words “Appellate Tribunal”, the words “, National Tax 

Tribunal” shall be inserted. 

4. In  section  28AA,  in  Explanations  1  and  2, after  the  words  “Appellate Tribunal”,  the  words 

“, National Tax Tribunal” shall be inserted. 

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5. In  section  28AB,  in  Explanations  1  and  2,  after  the  words “Appellate  Tribunal”, the  words 

“, National Tax Tribunal” shall be inserted. 

6. In section 28B, in sub-section (1), after the words “Appellate Tribunal”, the words “, National Tax 

Tribunal” shall be inserted. 

7. Sections 130, 130A, 130B, 130C and 130D shall be omitted. 

8.  In  section  130E,  in  clause  (b),  after  the  words  “any  order  passed”,  the  words  “before  the 

establishment of the National Tax Tribunal” shall be inserted. 

9. In section 131, after the words “an appeal has been preferred to the Supreme Court”, the words and 
figure  “under  this  Act  before  the  commencement  of  the  National  Tax  Tribunal  Act,  2005”  shall  be 
inserted. 

10. In section 131C, clause (b) shall be omitted. 

PART VII 

AMENDMENTS TO THE CENTRAL EXCISE ACT, 1944 

(1 OF 1944) 

1. In section 2, after clause (f), the following clause shall be inserted, namely:— 

'(ff) “National Tax Tribunal” means the National Tax Tribunal established under section 3 of the 

National Tax Tribunal Act, 2005;'. 

2. In section 11AA,  in  Explanations  1  and  2,  after  the  words  “Appellate Tribunal”,  the  words  

“, National Tax Tribunal” shall be inserted. 

3. In  section  11AB,  in  Explanations 1 and  2, after  the  words “Appellate  Tribunal”,  the  words   

“, National Tax Tribunal” shall be inserted. 

4. In section 11BB, in the Explanation, after the words “Appellate Tribunal”, the words “, National 

Tax Tribunal” shall be inserted. 

5. In section 35C, in sub-section (4), for the words, figures and letters “Save as provided in section 
35G or section 35L”, the words and figures “Save as provided in the National Tax Tribunal Act, 2005” 
shall be substituted. 

6. Sections 35G, 35H, 35-I and 35J shall be omitted. 

7. In section 35K,— 

(i) in sub-section (1), the words “High Court or the” shall be omitted; 

(ii) in sub-section (2),— 

(a) the words “the High Court or” occurring at both the places shall be omitted; 

(b) the words “as the case may be,” shall be omitted. 

8.  In  section  35L,  in  clause  (b),  after  the  words  “any  order  passed”,  the  words  “before  the 

establishment of the National Tax Tribunal” shall be inserted. 

9. In section 35N, after the words “an appeal has been preferred to the Supreme Court”, the words and 
figures  “under  this  Act  before  the  commencement  of  the  National  Tax  Tribunal  Act,  2005”  shall  be 
inserted. 

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