Service Tax on Legal Services by an Advocate or a partnership firm of Advocates – Exemption – Notification No.25/2021 dated 20.6.2012 – Powers and Jurisdiction of the Designated Officer
The Notification of 20.6.2012 provides for full exemption of service tax on legal services by an Advocate or a partnership firm of Advocates. However, the Deputy Commissioner, CGST, had passed an order dated 26.10.2023 levying service tax of Rs.35,82,298/- with interest and penalty on the Petitioner – an Advocate practising in the High Court of Bombay.
This was challenged in the High Court on two grounds (i) exemption of service tax on legal services and (ii) show cause notice was not served.
HELD that the Designated Officer has no jurisdiction and powers in view of the exemption vide Notification dated 20.6.2012. What is more fundamental is that the Designated Officer, although was pointed out that he would not have jurisdiction to take forward the proceedings since service tax was not leviable on the individual advocate, such contention was not considered. Therefore, in the interest of justice the demand notice was quashed holding that the Designated Officer has acted without jurisdiction and the impugned order is passed patently contrary to the NOtifications dated 20.6.2012.
Judgment dated 24.1.2024 in Writ Petition No.1085 of 2024 of Adv. Pooja Patil Vs. The Deputy Commissioner, CGST and CX Division VI, Raigad Commissionerate & others
