Kanwal Chaudhary Vs Insolvency And Bankruptcy Board of India & Ors (Delhi High Court)
The Delhi High Court considered W.P.(C) 9410/2021 and CM APPL.29223/2021 filed by an Advocate registered with the Bar Council of Delhi, challenging the IBBI communication/order dated 09 March 2021. The petitioner sought a direction that services provided by an Advocate under the Insolvency and Bankruptcy Code, 2016 as an Insolvency Resolution Professional (IRP) are covered under the reverse charge mechanism under Section 9 of the CGST Act and relevant notifications. According to the petitioner, the IBBI order directed him to furnish GST-compliant invoices for professional fees charged as an IRP on the basis that “Insolvency and Receivership” services were not covered under reverse charge.
The petitioner submitted that an Advocate acting as an IRP provides legal services and that GST should be charged on a reverse charge basis. He also challenged the IBBI’s jurisdiction and stated that the order was issued without reasons and without an opportunity of hearing. The Court issued notice to the respondents, permitted counter affidavits and rejoinder, if any, and listed the matter for 21 January 2022. Till further orders, the impugned order dated 09 March 2021 was stayed.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
