Reasons for creating the Karnataka Appellate Tribunal as given in the preamble to the KAT Act 1976- the only one of its kind in the Country
Appeals pertaining to the Commercial Taxes and Co-operative departments were being heard by a Bench consisting of a District Judge member and an officer of the concerned department, co-opted for the occasion. Similarly in the case of commercial taxes appeals, a non-official, who is an accountant had to be co-opted by the Chairman.
The aforesaid system involved practical difficulties like, having a panel and securing co-opted members keeping such co-opted members without work on non-working days, etc.
It was felt that for the better discharge of the Tribunal’s work instead of co-opted members permanent members drawn from the concerned departments were necessary.
Against the decision of the erstwhile Sales Tax Appellate Tribunal in commercial tax matters, a revision lay to the High Court. But this was done away with.
It was however felt that as these matters involved large sums of State revenues a revision against the Tribunal's decision to the High Court was necessary.
It was also felt that the Tribunal should have certain powers of a civil court while trying a suit under the Code of Civil Procedure, 1908.
Amendments in terms of the aforesaid were necessary since numerous matters relating to Commercial Taxes were pending before the Tribunal. .