Section 37C of the Sales Tax Act, 1990 revealed that a special Judges may be appointed for sales tax cases.
In a move to expedite legal proceedings and enhance the efficiency of tax-related trials, the Sales Tax Act, 1990 has been amended to introduce the provision for the appointment of Special Judges. The Federal Board of Revenue (FBR) recently issued an updated version of the Sales Tax Act, incorporating amendments through the Finance Act, 2021, effective up to June 30, 2021.
Section 37C of the Sales Tax Act, 1990 defines the framework for the appointment of Special Judges and reads as follows:
37C. Special Judges – (1) The Federal Government may, by notification in the official Gazette, appoint as many Special Judges as it considers necessary, and, where it appoints more than one Special Judge, it shall specify in the notification the headquarters of each Special Judge and the territorial limits within which he shall exercise jurisdiction under this Act.
(2) No person shall be appointed as a Special Judge unless he is or has been a Sessions Judge.
This groundbreaking provision grants the Federal Government the authority to appoint Special Judges through an official Gazette notification. The number of Special Judges appointed will be determined by the government based on its assessment of the necessity for such appointments. Additionally, if multiple Special Judges are appointed, their respective headquarters and territorial jurisdiction will be clearly defined in the notification.
The introduction of Special Judges is aimed at expediting trials related to tax matters, providing a specialized forum for the adjudication of cases under the Sales Tax Act, 1990. This move is expected to bring about a more focused and efficient legal process, specifically tailored to handle the complexities of tax-related disputes.
One notable requirement for eligibility as a Special Judge is that the individual must be, or must have been, a Sessions Judge. This criterion underscores the need for individuals with significant judicial experience and expertise to preside over the specialized role of a Special Judge. Sessions Judges, having dealt with a range of legal matters, are presumed to bring a wealth of experience to the table, ensuring a high level of competence in handling tax-related cases.
While the amendment is generally welcomed as a positive step toward enhancing the legal framework for tax matters, questions have been raised about the potential implications of concentrating such authority in the hands of Special Judges. Critics argue that safeguards and checks and balances must be in place to prevent the misuse of power and to ensure a fair and impartial legal process.
The inclusion of Section 37C in the Sales Tax Act, 1990 marks a significant development in the realm of tax-related legal proceedings. The potential appointment of Special Judges offers a specialized approach to handling complex tax matters, aiming to streamline the adjudication process. As the government moves forward with these amendments, it is imperative to strike a careful balance between empowering Special Judges and ensuring accountability to maintain the integrity of the tax dispute resolution process.
