No Service tax/GST Notice to be sent to Advocates: HC instructs GST Commissionerate

In matter of Pankaj Khare vs Union Of India Thru. Secy. Deptt. Of Custom And Cgst, Ministry Of Finance, New Delhi And Others High Court has expressed 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.

The petitioner by means of present writ petition has challenged the order dated 22.05.2023 passed by Dy. Commissioner, CGST & Central Excise Div. Lucknow – 1, Lucknow thereby assessing the petitioner with regard to service tax and levying tax and interest to the tune of Rs. 332651/-.

Learned counsel for petitioner has assailed the said order stating that the same is illegal and arbitrary and without jurisdiction.

He submits that as per Notification dated 20.06.2012 the service tax admitted for any individual advocate is nil for services rendered to any business entity situated in the taxable territory. The petitioner is a practicing advocate and as such he was exempted from service tax.

The High Court bench of Jyotsna Sharma and Alok Mathur has directed Commissioner, GST to issue a clear direction to the GST Commissionerate in 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.

Read Order