Whether a Senior Advocate is Liable to Pay Service Tax? Jharkhand HC Quashes Demand Notice

The bench observed that it is evident that the Central Government, vide Notification exempted certain services from the ambit of Section 66B of the Finance Act, 1994. Serial No.6 of the said notification exempted services provided by an individual as an advocate or a partnership firm of advocates by way of legal services to an advocate or partnership firm of advocates providing legal services, any person other than a business entity or a business entity with a turnover up to Rupees ten lakh in the preceding financial year.

High Court stated that “Since both the amendments relate back to the original document, the demand notice issued by the authority concerned for payment of service tax on legal services provided by a Senior Advocate for the period from 01.04.2016 to 05.06.2016 is held to be not sustainable in the eyes of law.”

In view of the above, the bench allowed the petition. 

Case Title: Madhu Sudan Mittal v. Union of India

Bench: Chief Justice Ravi Ranjan and Justice Sujit Narayan Prasad

Case No.: W.P.(T) No. 4448 of 2021

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