(1) The State Government shall, by notification with effect from a date specified therein, constitute Appellate Board to exercise the powers and perform the functions conferred on the Appellate Board by or under this Act.

(2) Till the date specified in the notification under sub-section (1), the Appellate Board constituted under the Madhya Pradesh Vanijyik Kar Adhiniyam, 1994 (No. 5 of 1995) shall act as Appellate Board for the purpose of this Act and on the date aforementioned all proceedings pending before the Appellate Board constituted under the Madhya Pradesh Vanijyik Kar Adhiniyam, 1994 (No. 5 of 1995) shall stand transferred to the Appellate Board constituted under sub-section (1).

(3) The Appellate Board shall consist of a Chairman and such number of judicial and Accountant members as the State Government may decide.

(3A) If by reason of any temporary increase in the business of the Appellate Board or by reason of arrears of work therein, it appears to the State Government that the number of members of the Appellate Board should be for the time being increased, the State Government may appoint duly qualified persons to be additional members of the Appellate Board for such period not exceeding two years as it may specify.

(4) Omitted w.e.f.1-4-2011.

(5) The tenure of the chairman and members shall be 5 years but shall not be beyond the age of 65 years, and the salary and other conditions of service of the Chairman and members shall be such as may be prescribed.

(6) The Chairman of the Board shall be a retired member of the Indian Administrative Service who has held a post equivalent to the Chief secretary of the State Government or Secretary to the Government of India and has experience of tax administration.

(7) Judicial members shall be the person who has been a member of Madhya Pradesh Higher Judicial Service or a person who has been an advocate dealt in tax matters for at least ten years. At least one Judicial member shall be a serving or retired member of the Madhya Pradesh Higher Judicial Service.

(8) Accountant members shall be the person who has been in practice of accountancy in Sales Tax/Commercial Tax/Value Added Tax, as a Chartered Accountant for at least ten years, or who has been a member of the Madhya Pradesh State Taxation Service for not less than thirty years and,-

(a) has held the post of Director or Additional Commissioner; or

(b) has held the post of Deputy Coomissioner for at least three years.

At least one accountant member shall be a serving or retired member of Madhya Pradesh State Taxation Service.

(9) The State Government may remove from office, the Chairman or member of the Board who-

(a) has been adjudged an insolvent, or

(b) has been convicted of an offence which in the opinion of the State Government, involves moral turpitude, or

(c) has become physically or mentally incapable of acting as such member, or

(d) has acquired such financial or other interest as is likely to effect prejudicially his functions as a member, or

(e) has so abused his position as to render his continuation in offence prejudicially to the public interest;

Provided that the Chairman shall not be removed from his office on the ground specified in clauses (d) and (e) above except on an enquiry held by the State Government in accordance with such procedure as it may prescribe in this behalf and finds the Chairman to be guilty of such ground:

Provided further that any member of the Board may be removed from the office, only after the consultation with the chairman.

(10) The terms and conditions of the service of the Chairman and the members of the Board shall not be varied to their disadvantage during their tenure of office.

(11) The Chairman or any member ceasing to hold office shall not be eligible to appear, act or plead before any authority appointed under the Act.

(12) Omitted w.e.f.1-4-2011.