Manisha Rajiv Shroff Vs Union of India & Ors. (Bombay High Court)
The petition was filed under Article 226 of the Constitution challenging an Order-in-Original dated 15 March 2023 imposing service tax liability on the petitioner, an advocate, along with interest and penalty. The petitioner also sought quashing of a recovery notice dated 31 October 2025 issued under Section 87 of the Finance Act, 1994, and the underlying show cause notice dated 27 October 2021.
The petitioner, an advocate registered with the Bar Council of Maharashtra and Goa since 5 February 2007, received a show cause notice alleging mismatch between Income Tax Returns, Tax Deducted at Source data, and Service Tax-3 returns for the period 2016–17. The notice was sent to the petitioner’s old address and was not received. Notices of three personal hearings were also not received. Consequently, the impugned order confirmed a service tax demand of Rs. 26,81,250/- with interest and penalty. Thereafter, a recovery notice was issued, a lien was created on the petitioner’s ICICI Bank account without notice, and the petitioner’s Axis Bank account was frozen. The petitioner obtained a copy of the recovery notice from Axis Bank on 23 December 2025.
The petitioner contended that service tax was not leviable on services provided by an advocate to a partnership firm of advocates in view of Notification No. 25/2012-ST and Notification No. 30/2012-ST issued by the Ministry of Finance, Department of Revenue. Alternatively, it was argued that such services were taxable under the reverse charge mechanism. The petitioner also alleged violation of principles of natural justice.
