Finance minister Pranab Mukherjee has constituted a committee to suggest steps to bring down litigation in indirect taxes.

"Rising litigation with taxpayers is matter of serious concern for the government. A need for reducing the litigation has been emphasised by the finance minister... As per the directions of the finance minister, a Standing Committee has been constituted in the CBEC to look into the issue," a finance ministry directive said.

As on March on September 2010, there were 83,213 litigations involving over 59,000 crore of indirect taxes pending before Supreme Court, High Courts, CESTAT and Commissioner (Appeals).

The panel, in the Central Board of Excise and Customs (CBEC), will identify systemic causes for litigation and prepare a roadmap for reducing existing and future litigations on the indirect tax side, the revenue department said.

The committee consists of two members of the Board, nominated officials of CBEC, and a representative of law ministry. A similar committee was also set up for reducing cases related to the income tax. With an aim to generate public feedback, the committee has also sought comments from taxpayers, trade associations and all others till March 31.