Don't Issue Service Tax/GST Notices To Lawyers Rendering Services: Allahabad High Court
The Allahabad High Court has directed the Commissioner, Goods and Services Tax (GST) to issue clear directions to the GST Commissionerate, Lucknow, that no notices regarding payment of service tax /GST is issued to the lawyers rendering legal service falling in the negative list so far as service tax is concerned.
“…This Court expresses its concern that practicing advocates should not have to face harassment on account of the department issuing notices and calling upon them to pay service tax/GST when they are exempted from doing so and in the process also calling them to prove that they are practicing advocates”, a bench of Justice Alok Mathur and Justice Jyotsna Sharma observed in the matter.
Advocate Yogesh Srivastava appeared for the petitioner, and Advocate Dipak Seth appeared for the respondents.
In the instant case, the petitioner assailed the order dated May 22, 2023 passed by the Deputy Commissioner, CGST & Central Excise, assessing a service tax and further levying tax and interest to the tune of Rs. 332651/ for being illegal, arbitrary and without jurisdiction
However, while submitting a notification dated June 20, 2012, the petitioner contended that being a practicing advocate, he is exempted from the service tax.
As per the 2012 notification, the service tax admitted for any individual advocate is nil for services rendered to any business entity situated in the taxable territory.
The respondents however produced an order dated June 6, 2023 highlighting that the respondents had dropped the proceedings against the petitioner.
The Court took the order on record and noted that during the hearing of the petition, a number of other members of the Bar flagged the same issue.
Accordingly, the bench disposed of the matter.
Cause Title: Pankaj Khare v. Union Of India Thru. Secy. Deptt. Of Custom And CGST [Neutral Citation No. - 2023:AHC-LKO:40387-DB]
Click here to read/download the Order