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
 

 

[YAGAY and SUN]

Thanks for sharing of information.

AI Summary

Reverse charge on legal services stayed; amended service-tax provisions and rule suspended pending further hearing.
The Delhi High Court ordered that the amended reverse-charge provisions affecting legal services and Rule 2(1)(d)(D)(II) of the Service Tax Rules shall not be given effect to until the next hearing, applying the spirit of a prior interim order and thereby suspending operative application of the amended service-tax provisions pending further judicial consideration.