In Writ Tax No. - 148 of 2023 -ALL HC- Allahabad High Court expresses concern over harassment of practicing advocates exempted from paying Service Tax/GST; Orders Commissioner, GST to cease issuing notices to exempted lawyers
Justice Alok Mathur & Justice Jyotsna Sharma [07-06-2023]

Read Order: Pankaj Khare v. Union of India Thru. Secy. Deptt. of Custom and CGST, Ministry of Finance, New Delhi and Others

Chahat Varma

New Delhi, June 16, 2023: The Lucknow bench of the Allahabad High Court has expressed concern over the harassment faced by practicing advocates who are exempted from paying Service Tax/GST. The court observed that tax authorities were issuing notices to advocates, asking them to pay Service Tax/GST and requiring them to provide proof of their status as practicing advocates.

The petitioner filed a writ petition challenging the order passed by the Deputy Commissioner, CGST & Central Excise Division Lucknow, regarding service tax. The petitioner argued that the order was illegal, arbitrary, and without jurisdiction. He cited the Notification dated 20.06.2012 which exempted individual advocates from service tax for services rendered to business entities in the taxable territory. The petitioner, being a practicing advocate, claimed that he was exempt from service tax.

During the hearing of the case, several members of the Bar informed the court that they had also received similar notices from the tax authorities.

The division bench, expressing concern over the matter, directed the Commissioner, GST to issue clear instructions to the GST Commissionerate in Lucknow. The directive stated that no notices regarding the payment of Service Tax/GST should be issued to lawyers who provide legal services falling under the negative list of service tax.