Order Date – 07 June 2023

Parties: Pankaj Khare Vs Union Of India Thru. Secy. Deptt. Of Custom And Cgst, Ministry Of Finance, New Delhi And Others

Facts – 

• The Petitioners, Pankaj Khare, is a practicing advocate and 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, hence he was exempted from service tax.
• However, order was issued assessing the petitioner with regard to service tax and levying tax and interest.

Issue – 

• Whether the petitioner being an advocate is exempt from service tax liability?

Order – 

• The Divisional Bench of Hon’ble High Court observed 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.
• The 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.
• The writ petition is disposed of.