Case Law Details
Pankaj Khare Vs Union of India (Allahabad High Court)
Introduction: In a significant decision, the Allahabad High Court ruled on the case of Pankaj Khare Vs Union of India, addressing the applicability of GST and service tax for practicing advocates. This case explores the rights and privileges of legal professionals in India, specifically concerning taxation law.
Analysis: Pankaj Khare, a practicing advocate, disputed an order issued by the Deputy Commissioner, CGST & Central Excise Division, Lucknow, assessing him with service tax and levying tax and interest amounting to Rs. 332651/-. The petitioner claimed that as a practicing advocate, he was exempt from service tax under a Notification dated 20.06.2012, rendering the order illegal, arbitrary, and without jurisdiction.
The court took into account an order whereby the respondents themselves dropped the proceedings against the petitioner. The court further observed that numerous members of the Bar had received similar notices. The court expressed concern over the harassment experienced by practicing advocates due to such notices, even when they are exempted from service tax/GST.
The judgment by Allahabad High 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 providing legal services that fall within the negative list as far as service tax is concerned.
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