2021 (7) TMI 1146 - HC - Service Tax

Levy of service tax - professional services - services provided by an advocate or a partnership firm of advocates providing legal services - HELD THAT - A compliance affidavit has been filed by the Principal Commissioner, GST Central Excise Commissionerate, Bhubaneswar enclosing the copies of instructions issued on 9th April, 2021 and 15th April, 2021 reiterating, inter alia, that the services provided by an advocate or a partnership firm of advocates providing legal services to any person other than a business entity and to a business entity with a turnover up to rupees ten lakhs in the preceding financial year are exempted from levy of service tax. Petition disposed off.

Summary

Issues: Compliance with service tax exemption for legal services provided by advocates to business entities and individuals, coordination among field formations, quashing of impugned notices.

The judgment addresses the compliance with service tax exemption for legal services provided by advocates to business entities and individuals. The Principal Commissioner, GST & Central Excise Commissionerate, Bhubaneswar, filed a compliance affidavit enclosing instructions reiterating the exemption for services provided by advocates to certain entities based on turnover criteria. The instructions emphasized diligence in verification against entities providing exempted services to avoid unnecessary actions under the Finance Act, 1994. The court noted identical instructions issued by both Bhubaneswar and Rourkela Commissionerate, leading to the quashing of impugned notices under Annexures-3 to 8. No further directions were deemed necessary in the present petition, and the writ petition was disposed of accordingly.

Additionally, the judgment highlighted the importance of coordination among field formations to prevent duplication and unnecessary hardship to parties supplying information during verification processes. The court emphasized maintaining coordination to avoid issuing multiple letters to the same entity by different field formations. This coordination directive aimed to streamline the verification process and prevent redundant inquiries, ensuring efficiency and fairness in compliance procedures.

Moreover, the judgment acknowledged the ongoing restrictions due to the resurgence of the COVID-19 situation. To facilitate access to the order, the court allowed parties to utilize a printout of the order available on the High Court's website as a certified copy, subject to attestation by the concerned advocate. This provision aimed to accommodate the challenges posed by the pandemic restrictions while ensuring the parties' access to necessary documentation in a manner compliant with the Court's prescribed procedures.