(1) The Government shall appoint an Appellate Tribunal consisting of a Chairman and two other members to exercise the functions conferred on the Appellate Tribunal by or under this Act. The Chairman shall be a judicial officer not below the rank of a District Judge Super Time Scale/District Judge Selection Grade and of the other two members one shall be an officer of the State Government not below the rank of a Joint Commissioner of Commercial Taxes, and the other shall be an officer of the Indian Revenue Service not below the rank of an Additional Commissioner.

(2) Any vacancy in the membership of the Appellate Tribunal shall be filled up by the State Government.

(3) Notwithstanding anything contained in sub-section (1), the Government may at any time, by order, constitute an additional Bench of the Tribunal consisting of a Chairman who shall be a District Judge Super Time Scale/District Judge Selection Grade and two members, of whom one shall be an Officer of the State Government not below the rank of a Joint Commissioner of commercial taxes and the other shall be an officer of the Indian Revenue Service not below the rank of an Additional Commissioner to function at such place and for such period as they may specified therein.

(4) Where any orders passed by the Benches specified in sub-section (1) and (3) are in conflict with each other on same issue the senior Chairman of the two benches, on application or suo-moto shall constitute and preside over a full Bench of not less than five members in the manner specified in the regulations made under sub-section (5) and the decision of such bench shall be final.

(5) The Appellate Tribunal shall, with the previous sanction of the State Government make regulations consistent with the provisions of this Act and rules made thereunder, for regulating its procedure and the disposal of its business. Such regulations shall be published in the Andhra Pradesh Gazette.

(6) (a) The functions of the Appellate Tribunal may be exercised,-

(i) by a Bench consisting of all the members of the Appellate Tribunal; or

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

(iii) by a Bench consisting of the Chairman and another member as constituted by the Chairman; or

(iv) by a Bench consisting of the other two members in case the Chairman is absent or on leave or transfer or in case of the office of the Chairman is vacant otherwise; or

(v) by a single member of the Appellate Tribunal constituted by the Chairman in cases where the turnover does not exceed rupees five lakhs:

Explanation:- The single member referred to in item (v) above may be either the Chairman himself or any other member.

(b) where an appeal or application is heard by all the three members of the Appellate Tribunal, and the members are divided in opinion, on any point or points such point or points shall be decided in accordance with the opinion of the majority;

(c) where an appeal or application is heard by a Bench consisting of two members whether it consists of the Chairman or not, and the members are divided in opinion, on any point or points, such point or points shall be referred to the Appellate Tribunal consisting of all the three members;

(d) if any case which comes up before a single member (who is not the Chairman) or a Bench (of which the Chairman is not a member) involves a question of law, such single member or Bench may in his or its discretion, reserve such case for decision by a Bench of which the Chairman shall be a member.