Tribunals to get rid of corruption post-GST
Nov 01 2016 , New Delhi
Tags: News
The Customs, Excise, Service Tax Appellate Tribunal (CESTAT) order has been made applicable with immediate effect
It seems a daunting task for tax authorities to clear all legacy cases before the launch of goods and services tax (GST) in the face of allegations of a nexus between lawyers and tribunal members. A top Delhi-based law firm, Lakshmikumaran and Sridharan, securing a favourable order from a tax tribunal after getting adverse order from the Supreme Court is a case in point.
It has now been learnt that that the Customs, Excise, Service Tax Appellate Tribunal (CESTAT) has directed the registrars of principal bench not to post any case represented by the law firm before a bench presided by a particular member.
“All deputy registrars/assistant registrars of principal bench and outlying benches of the tribunal are hereby directed that till further orders, no case/appeals represented by Lakshmikumaran and Sridharan law firm be posted before any bench presided by Hon’ble Archana Wadhwa, member (J),” the CESTAT said in its order on October 21.
The CESTAT order has been made applicable with immediate effect.
In the above case involving a private firm, the lawyer arguing for them is accused of suppressing the fact that the apex court had given its order in the case amounting to deceit and contempt of court.
The development is not in isolation. Recently, a renowned lawyer declared unaccounted money of over Rs 125 crore prompting the tax authorities to unravel a possible longer money trail.
Tax experts have said that the proposed tribunal under the GST regime would address the issue of unhealthy practices in tribunals, which is not a secret. This is also expected to reduce unsavoury means used in transfer and postings at the tribunal and break the cycle of corruption.
“It cannot be denied that those candidates who could manage to secure appointments through corrupt means, cannot keep the adjudicating atmosphere free from corrosion as they seek the return of expenditure incurred by them in finding their way into the tribunal. This forms a cycle of corruption and lowering of the judicial values. This cyclic process becomes unending because greed is never curtailed,” a Supreme Court-appointed law commission in its 162nd report on the working of tribunals, including CESTAT, had said.
As government gears up to implement the GST which promises to reduce litigation the central board of excise and customs (CBEC) has asked its field formations to clear the pending cases so that the new indirect tax reform could be started on a clean slate.
It has now been learnt that that the Customs, Excise, Service Tax Appellate Tribunal (CESTAT) has directed the registrars of principal bench not to post any case represented by the law firm before a bench presided by a particular member.
“All deputy registrars/assistant registrars of principal bench and outlying benches of the tribunal are hereby directed that till further orders, no case/appeals represented by Lakshmikumaran and Sridharan law firm be posted before any bench presided by Hon’ble Archana Wadhwa, member (J),” the CESTAT said in its order on October 21.
The CESTAT order has been made applicable with immediate effect.
In the above case involving a private firm, the lawyer arguing for them is accused of suppressing the fact that the apex court had given its order in the case amounting to deceit and contempt of court.
The development is not in isolation. Recently, a renowned lawyer declared unaccounted money of over Rs 125 crore prompting the tax authorities to unravel a possible longer money trail.
Tax experts have said that the proposed tribunal under the GST regime would address the issue of unhealthy practices in tribunals, which is not a secret. This is also expected to reduce unsavoury means used in transfer and postings at the tribunal and break the cycle of corruption.
“It cannot be denied that those candidates who could manage to secure appointments through corrupt means, cannot keep the adjudicating atmosphere free from corrosion as they seek the return of expenditure incurred by them in finding their way into the tribunal. This forms a cycle of corruption and lowering of the judicial values. This cyclic process becomes unending because greed is never curtailed,” a Supreme Court-appointed law commission in its 162nd report on the working of tribunals, including CESTAT, had said.
As government gears up to implement the GST which promises to reduce litigation the central board of excise and customs (CBEC) has asked its field formations to clear the pending cases so that the new indirect tax reform could be started on a clean slate.
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