Allahabad High Court has taken a stand to safeguard practicing lawyers from unwarranted harassment by directing the Goods and Services Tax (GST) Commissionerate at Lucknow to issue clear instructions. The court aims to prevent the issuance of notices demanding service tax or GST payments from lawyers who are exempt from such obligations.

The bench comprising Justice Jyotsna Sharma and Justice Alok Mathur expressed concern over the distress faced by advocates due to these unnecessary notices. It further acknowledged that several lawyers had lodged similar complaints regarding the receipt of such notices.

In response to a plea filed by lawyer Pankaj Khare, challenging an order issued by the Deputy Commissioner, CGST and Central Excise Division, Lucknow, the court found the order to be illegal, arbitrary, and devoid of jurisdiction. The order had imposed a service tax amounting to ₹33,2651 on Khare.

The petitioner drew attention to a significant notification issued on June 20, 2012, which clarified that individual advocates were exempt from paying service tax for legal services provided to any business entity located in a taxable territory.

The counsel representing government authorities informed the bench that proceedings against the petitioner had been dropped in a subsequent order dated June 6, 2023.

Despite the petitioner's case being resolved, the court expressed deep concern over the harassment faced by practicing lawyers due to the issuance of unwarranted tax notices. Consequently, the court disposed of the plea while emphasizing the importance of clear directions to prevent such notices from being issued to lawyers.

"This Court expresses its concern that practicing advocates should not have to face harassment on account of the department issuing notices and calling upon them to pay service tax/GST when they are exempted from doing so and in the process also calling them to prove that they are practicing advocates," stated the Court.

Advocate Yogesh Chandra Srivastava represented the petitioner, while Advocate Dipak Seth appeared on behalf of the respondent authorities.

The Allahabad High Court's ruling not only brings relief to lawyers but also sets an important precedent by ensuring that legal professionals are protected from unnecessary tax burdens and harassment.