Delhi High Court stayed reverse charge on Legal services

[JAMES PG]

IN THE HIGH COURT OF DELHI AT NEW DELHI 
    
  W.P.(C) 5957/2012 and CM No.12257/2012 (for stay)
    
  DELHI TAX BAR ASSOCIATION and ANR. ..... Petitioners
  
  Through: Mr. A.S. Chandhiok, Ms. Prem Lata Bansal and Mr. J.P. Sengh,
  Sr. Advs. with Mr. Ruchir Bhatia, Mr. Bhagat Singh and Ms. Harleen, Advs.
  
  versus
    
  UNION OF INDIA and ORS. ..... Respondents
  
  Through: Mr. Rajeeve Mehra, ASG with Ms. Maneesha Dhir, Ms. Priya and
  Ms. Mithu Jain, Advs. for R-1.
  
  CORAM:
  
   HON'BLE THE ACTING CHIEF JUSTICE
  
   HON'BLE MR. JUSTICE RAJIV SAHAI ENDLAW
  
    
   O R D E R
  
   21.09.2012
  
  
    Notice.
  
  Learned counsel for the respondent No.1 accepts notice.
  
  The remaining respondents be served for 27th November, 2012.
  
  Rule DB.
  
  Our attention is drawn to the interim order dated 29.04.2011 passed
  by this Court in W.P.(C) No.2792/2011 whereby it was directed that the
  amendment made in Section 65(105)(zzzzm) by the Finance Act, 2011 shall
  not be given effect to. Going by the spirit of that order, which
  continues to  be in force, we direct that the provisions of Sections 65B(44) and 66B of
     
  the Finance Act, 1994 (as amended by the Finance Act, 2012) as well as
  Rule 2(1)(d)(D)(II) of the Service Tax Rules, 1994 shall not be given
  effect till the next date of hearing.
  
  CM No.12256/2012 (for exemption)
  
  Allowed, subject to just exceptions.
  
  The application is disposed of.
  
        
  ACTING CHIEF JUSTICE
  
            
  RAJIV SAHAI ENDLAW, J
  
  SEPTEMBER 21, 2012
 

 

AI Summary

Court Stays Reverse Charge Mechanism for Legal Services; Sections 65B(44) and 66B of Finance Act, 1994 on Hold The Delhi High Court issued a stay on the reverse charge mechanism for legal services, as challenged by the Delhi Tax Bar Association against the Union of India. The court referenced an interim order from April 2011, which halted the implementation of certain amendments in the Finance Act related to service tax. Consequently, the provisions of Sections 65B(44) and 66B of the Finance Act, 1994, as amended in 2012, and specific rules of the Service Tax Rules, 1994, will not be enforced until the next hearing. The court scheduled further proceedings for November 27, 2012.