Pankaj Khare vs. Union Of INDIA Thru. Secy. Deptt. Of Custom And CGST, Ministry Of Finance, New Delhi And Others
Facts
The petitioner, Pankaj Khare, a practicing advocate, challenged an order dated 22.05.2023 passed by the Dy. Commissioner, CGST & Central Excise Div. Lucknow - 1. This order assessed the petitioner for service tax and levied a tax and interest of Rs. 332,651/-. The petitioner argued that as per a Notification dated 20.06.2012, service tax is nil for individual advocates rendering services to business entities in the taxable territory, and therefore, he was exempted. During the hearing, the respondent's counsel produced an order dated 06.06.2023, indicating that the respondents had themselves dropped the proceedings against the petitioner.
Held
The Court noted that the respondent had themselves dropped the proceedings against the petitioner by an order dated 06.06.2023. The Court expressed concern that practicing advocates were being issued notices and called upon to pay service tax/GST despite being exempted, causing them harassment. Consequently, the Court directed the Commissioner, GST, to issue clear instructions to the GST Commissionerate in Lucknow to refrain from issuing notices regarding payment of service tax/GST to lawyers whose legal services fall within the negative list concerning service tax. The writ petition was disposed of with these observations and directions.
Key Issues
1. Whether the order dated 22.05.2023 passed by the Dy. Commissioner, CGST & Central Excise Div. Lucknow - 1, levying service tax and interest on the petitioner, an individual advocate, was illegal, arbitrary, and without jurisdiction, particularly in light of Notification dated 20.06.2012 exempting such services? Petitioner's contention: The petitioner argued that the impugned order was illegal and arbitrary. He contended that under Notification dated 20.06.2012, individual advocates providing services to business entities within the taxable territory were exempted from service tax, and therefore, the assessment was without jurisdiction. Respondent's contention: The respondent's counsel produced an order dated 06.06.2023, stating that the proceedings against the petitioner had been dropped by the department itself. The judgment does not record any further arguments from the respondent.
Sections Cited
Notification dated 20.06.2012
AI-generated summary — verify with the full judgment below
Neutral Citation No. - 2023:AHC-LKO:40387-DB Court No. - 2 Case :- WRIT TAX No. - 148 of 2023 Petitioner :- Pankaj Khare Respondent :- Union Of India Thru. Secy. Deptt. Of Custom And Cgst, Ministry Of Finance, New Delhi And Others Counsel for Petitioner :- Yogesh Chandra Srivastava Counsel for Respondent :- Dipak Seth Hon'ble Alok Mathur,J. Hon'ble Mrs. Jyotsna Sharma,J.
Heard Sri Yogesh Srivastava, learned counsel for petitioner as well as Sri Sri Dipak Seth, learned counsel for respondents.
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 juri iction.
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 fr
The judgment continues below.
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