High Court stays service tax notice on advocate for 2014-15, cites exemption & recovery provisions

The High Court of Bombay granted an interim stay on a notice issued by the Assistant Commissioner of Central Goods and Services Tax seeking to levy service tax on an advocate for the financial year 2014-15. The advocate had argued for exemption under Central Government notifications and the provision for recovering service tax from the service recipient. The Court scheduled further proceedings for a future date and directed all parties to act upon the digitally signed order provided via fax or email.

---

---

Issues: Challenge to notice to show cause cum demand seeking to levy service tax for the financial year 2014-15 on an advocate, claiming exemption under Central Government notifications and provision for recovering service tax from service recipient.

Analysis:
The High Court of Bombay heard a writ petition challenging a notice issued by the Assistant Commissioner of Central Goods and Services Tax (CGST) seeking to levy service tax on the petitioner, who is an advocate, for the financial year 2014-15. The petitioner contended that services provided by advocates are exempt from service tax under various exemption notifications issued by the Central Government. Additionally, there is a provision for recovering service tax from the service recipient. The petitioner argued that the impugned notice was issued mechanically, ignoring these exemptions and provisions.

After hearing the arguments, the Court directed, as an interim measure, a stay on the impugned show cause cum demand notice until further orders. The Court scheduled the matter to be heard again on a future date. The order was to be digitally signed by the Private Secretary of the Court, and all concerned parties were instructed to act upon the digitally signed copy of the order provided via fax or email.

---