The finance ministry's proposal to set up a National Tax Tribunal has moved a step closer with the law ministry finding no objection with the plan.

The law ministry has vetted the proposal which would now go before the Cabinet for approval, Law Minister Arun Jaitley told PTI in New Delhi on Thursday.

Finance Minister Jaswant Singh had proposed the setting up of the tribunal to streamline tax administration.

The proposed tribunal would relieve the high courts of the burden of tax disputes.

At present, the disputes relating to taxation are taken up by the Income Tax Appellate Tribunal. The cases, which could not be resolved in the ITAT are referred to the high courts and then to the Supreme Court.

The proposed tax tribunal would take up appeals against the ITAT orders. Its order could be challenged only in the Supreme Court.

At present, there are 1,72,329 cases pending in ITAT. Although the number of pendency has come down drastically from over 300,000 in 1999, the number is still large and had revenue implications as well.