'Refrain From Issuing Service Tax /GST Notices To Lawyers Rendering Legal Services': Allahabad HC Directs Lucknow GST Commissionerate

The bench of Justice Alok Mathur and Justice Jyotsna Sharma directed thus while hearing a writ plea filed by an Advocate Pankaj Khare challenging a May 2023 order passed by Dy. Commissioner, CGST & Central Excise Div. Lucknow 1 thereby assessing him with regard to service tax and levying tax and interest of over Rs. 33 lakhs.

Appearing for him, his counsel YC Srivastava submitted that the petitioner is a practising advocate and as such he was exempted from service tax.

In this regard, he referred to the Notification dated June 20, 2012, which states that the service tax admitted for any individual advocate is nil for services rendered to any business entity situated in the taxable territory.

On the other hand, the counsel for the respondents produced another order dated June 6, 2023, showing that the respondents have themselves dropped the proceedings against the petitioner.

However, since during the hearing in the matter, a number of members of the Bar informed the Court that similar notices have been issued to the various members of the Bar, the Court, expressed its concern by observing thus:

“…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.”

Consequently, the Commissioner, of GST was directed by the HC to issue 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. With this, the petition was disposed of.

Appearances

Counsel for Petitioner: Yogesh Chandra Srivastava

Counsel for Respondent: Dipak Seth

Case title - Pankaj Khare vs. Union Of India Thru. Secy. Deptt. Of Custom And Cgst, Ministry Of Finance, New Delhi And Others 2023 LiveLaw (AB) 187 [WRIT TAX No. - 148 of 2023]

Case Citation: 2023 LiveLaw (AB) 187

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