(1) The Government shall appoint an Appellate Tribunal consisting of a Chairman and as many other members as they think fit, to perform the functions assigned to the Appellate Tribunal by or under this Act. The Chairman shall be a person who is or has been or is qualified to be appointed as a judicial Officer not below the rank of a District Judge and the other members shall possess such qualification as may be prescribed.

(2) Any vacancy in the office of a member of the Appellate Tribunal shall be filled by the Government.

(3)(a) Subject to the provisions of clause (b) the functions of the Appellate Tribunal may be performed.

(i) by a Bench consisting of the Chairman and any other member; or

(ii) by a Bench consisting of the Chairman and two other members; or

(iii) by a Bench consisting of two or more members other than the Chairman.

(b) The Chairman or any member of the Appellate Tribunal nominated by him may, sitting singly, dispose of any cases where the amount of tax or penalty disputed in appeal does not exceed twenty five thousands rupees and the order of assessment or penalty appealed against is issued by an officer not above the rank of a Assistant Commissioner of State Tax.

(c) A Bench consisting of two or more members other than the Chairman or a judicial member may dispose of any case where the amount of tax or penalty disputed in appeal does not exceed three lakh rupees.

(3A) If any case which comes up before a Bench consisting of a single member other than the Chairman or a Bench consisting of more than one member, of which the Chairman is not a member, involves a question of law, the Bench may, in its discretion, reserve such case for decision by the Chairman or by a Bench to be constituted under Sub- section (3B), of which the Chairman shall be member.

(3B) The Bench or Benches of the Appellate Tribunal shall be constituted by the Chairman in accordance with the provisions of this Act and the rules made thereunder.

(3C) If the members of a Bench differ in opinion on any point, the point shall be decided according to the opinion of the majority, if there is a majority, but if the members are equally divided, they shall state the point or points on which they differ, and such point or points shall be heard;

(i) When the Chairman is not a member of that Bench, either by the Chairman or by the Chairman and any other member or members as the Chairman may direct; and

(ii) When the Chairman is a member of that Bench, by any other member or members to whom the case is referred by the Chairman;

and such point or point shall be decided according to the opinion of the majority of the members of the Tribunal who have heard the case, including those who first heard it.

(3D) Any member who has previously dealt with any case coming up before the Appellate Tribunal in any other capacity or is personally interested in any case coming up before the Appellate Tribunal shall be disqualified to hear that case.

(3E) Where any case is heard by a Bench consisting of two members and the members are divided in their opinion on any point and the other member or members of the Tribunal are disqualified under sub-section (3D) to hear the case, the Government may appoint a person qualified to be appointed as a member of the Appellate Tribunal as an additional member of the Tribunal and the point shall be decided in accordance with the opinion of the majority of the members of the Tribunal who have heard the case including those who first heard it.

(3F) The additional member appointed under sub-section (3E) shall cease to hold office on the disposal of the case for which he was appointed.

(4) The Appellate Tribunal shall, with the previous sanction of the Government, make regulations consistent with the provisions of this Act and the Rules made thereunder for regulating its procedure and the disposal of its business.