Published On: Tue, Apr 19th, 2016

Allahabad High Court stays notification on service tax on lawyers

Allahabad: Allahabad High Court on Monday stayed the the notification of Central Board of Excise and Customs (CBEC), imposing service tax on senior advocates.

CBEC Chairman Najib Shah and Finance Minister Arun Jaitley

CBEC Chairman Najib Shah and Finance Minister Arun Jaitley

The tax has been imposed by Union Budget-2016.

A Division Bench of Justice Vimlesh Kumar Shukla and Justice U C Srivastava stayed the the notification and directed the CBEC to file its respective reply within four weeks and ordered to list the case after six weeks for hearing.

CBEC issued a notification on March 1, by which senior advocates of the country have been asked to pay service tax on their fees from April 1 onwards.

The petitioner, Shashi Nandan, a designated senior advocate practicing in Allahabad High Court, focused his plea on the point that services provided by a Senior Advocate could not be deemed as ‘service’ for the purpose of taxation.

The petitioner further stated that a Senior Advocate was an officer of the Court and assisted in the administration of justice.

He also argued that impugned notification is discriminatory and also against the fundamental right of the profession of senior advocate as provided under Article 14 (right to equality) and 19(1)(g) of the Constitution, which provides freedom to practice any profession or to carry on any occupation, trade or business.

He also submitted in the court that the impugned notification makes discrimination between senior advocates and other advocates.


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