2023 (6) TMI 635 - HC - GST

Exemption from Service Tax / GST - practicing advocate - HELD THAT - During hearing a number of members of the Bar have informed this Court that similar notices have been issued to the various members of the Bar. 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. The Commissioner, GST is directed 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. Writ petition disposed off.

Summary

Issues Involved:
The issue involved in the case is challenging the order assessing the petitioner with service tax and interest, claiming exemption as a practicing advocate, and addressing the harassment faced by advocates due to incorrect notices issued by the department.

Assessment of Service Tax and Interest:
The petitioner challenged the order assessing them with service tax and interest amounting to Rs. 332651, contending it to be illegal, arbitrary, and without jurisdiction.

Exemption Claim as Practicing Advocate:
The petitioner, a practicing advocate, claimed exemption from service tax u/s Notification dated 20.06.2012, which admitted nil service tax for services provided to business entities in taxable territories.

Harassment Faced by Advocates:
The court acknowledged concerns raised by members of the Bar regarding similar incorrect notices issued to advocates. It directed the Commissioner, GST, to issue clear directions to prevent harassment of practicing advocates by not issuing notices for service tax/GST, especially when they are exempted.

Disposition of the Writ Petition:
The court disposed of the writ petition with the mentioned observations and directions, ensuring that practicing advocates are not wrongfully subjected to unwarranted tax demands and harassment by the authorities.