Biggest Beneficiaries of CBEC Draconian Circular - Lawyers!

[shobha nagrani]

Taxindianonline.com has pointed out a joyous outcome of the CBEC draconian circular. The lawyers (on both sides) are reaping in a windfall. Multiple Writ Petitons have been filed in most cities and the lawyers do not have to say anything to get a stay order and charge fees in lakhs. The assessees' have spent about Rs. 300 crores while the department has spent about Rs. 60 crores so far.

Now, this is the kind of new year's gift I would like to receive :) Jai Ho CBEC!

Who has benefitted from this Draconian Circular?

IN the Andhra Pradesh High Court alone, about 50 writ petitions have been filed against this Circular and the threatened recovery, and many more writs are on their way. A consultant who is not even a lawyer told me, "the Board has given a new year gift; I am hiring lawyers to file writs on behalf of my clients and making some good money - unexpected windfall!" Some lawyers have already earned a few lakhs of rupees without even opening their mouths in the Courts.

Even the Standing Counsels of the CBEC are doing fine. They have all become rich suddenly. A rough estimate shows that the CBEC must be spending about Rs. 60 Crores to defend these writs and the assessees must be spending around Rs. 300 Crores. This Circular has generated 360 Crores of business - and with the Government not getting a single paisa!

The Board should seriously consider withdrawing this Circular immediately to end this farce gracefully before it is struck down by a Court.

http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=16807