{"id":346859,"date":"2025-04-30T17:30:50","date_gmt":"2025-04-30T12:00:50","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=346859"},"modified":"2025-05-06T13:18:32","modified_gmt":"2025-05-06T07:48:32","slug":"services-provided-to-individual-by-advocate-or-firm-are-exempted-from-levy-of-service-tax-orissa-hc","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2025\/04\/30\/services-provided-to-individual-by-advocate-or-firm-are-exempted-from-levy-of-service-tax-orissa-hc\/","title":{"rendered":"Services provided to individual by advocate or firm are exempted from levy of service tax; Orissa HC quashes Rs. 2 Lakhs service tax notice"},"content":{"rendered":"
\n

Orissa High Court:<\/span> In a civil writ petition by a practicing advocate against the service tax notice of Rs. 2,14,600\/- served upon him, the Division Bench of Chief Justice Harish Tandon and B.P. Routray, J. allowed the petition, and quashed the impugned notices, reiterating that lawyers with their individual practice are exempt from levy of GST and service tax.<\/p>\n

The advocate-petitioner was served with the impugned notice demanding service tax of Rs. 2,14,600\/- for the Financial Year 2015-16 in terms of Section 73<\/a> of the Finance Act, 1994<\/a>. This was followed by the notice of recovery of service tax of Rs. 2,14,600\/- and penalty of Rs. 2,34,600\/- plus interest by the Superintendent (ARC), GST and Central Excise, Bhubaneswar-II Division.<\/p>\n

The Department- respondent filed their counter stating that the demand-cum-show cause notice was issued under the provisions of Section 73 of the Finance Act for non-payment of service tax and that he did not cooperate with the authorities, and as such, the adjudication process was completed ex-parte.<\/p>\n

The Court reiterated the settled position by the Court in Devi Prasad Tripathy<\/span> v. Principal Commissioner CGST and Central Excise Bhubaneswar<\/span>1<\/sup><\/a>, that the practicing advocates should not face harassment on account of the Department issuing notices calling upon them to pay service tax \/ GST when they are exempted from doing so, and in the process also having to prove they are practicing advocates. The Court noted the Department’s instruction dated 09-04-2021, that the services provided by an advocate or a Partnership firm of advocates providing legal services to any person other than a business entity and a business entity with a turnover up to rupees ten lakhs in the preceding financial year are exempted from the levy of service tax.<\/p>\n

In the matter at hand, the Court pointed out that the petitioner is a legal practitioner and hence, exempted from the levy of service tax for such income he derived from his legal service as a Lawyer. Thus, the demand-cum-show cause notice dated 15th April, 2021 and the order of recovery were quashed to the extent they relate to the demand for service tax from the income from his profession as an individual lawyer.<\/p>\n

[Shivananda Ray v. Principal Commissioner CGST, 2025 SCC OnLine Ori 1442<\/a>, decided on: 07-04-2025<\/span>]<\/p>\n\n

Advocates who appeared in this case:<\/p>\n

For the petitioner:<\/span> M.M. Patnaik, Advocate<\/p>\n

For the respondent:<\/span> T.K. Satapathy, Sr. Standing Counsel<\/p>\n<\/div>\n\n

1.<\/a> W.P.(C) No.27727 of 2020.<\/p>\n","protected":false},"excerpt":{"rendered":"

Services provided by an advocate or a Partnership firm of advocates providing legal services to any person other than a business entity and a business entity with a turnover up to rupees ten lakhs in the preceding financial year are exempted from the levy of service tax.<\/p>\n","protected":false},"author":67517,"featured_media":315154,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[81556,34483,81557,49604,37146,3208,81554,81555],"class_list":["post-346859","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-chief-justice-harish-tandon","tag-finance-act-1994","tag-justice-b-p-routray","tag-orissa-hc","tag-orissa-high-court","tag-service_tax","tag-service-tax-for-lawyers","tag-service-tax-notice-quashed"],"yoast_head":"\nServices provided to individual by advocate or firm are exempted from levy of service tax: Orissa HC | SCC Times<\/title>\n<meta name=\"description\" content=\"Services provided to individual by advocate or firm are exempted from levy of service tax; 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Muralidhar CJ and B.P Routray J. allowed the petition and sets aside the impugned assessment order and the consequential demand order being unsustainable in law. \u00a0The background facts are that the Petitioner firm is engaged in the business of manufacturing\/processing of cashew\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":54621,"url":"https:\/\/www.scconline.com\/blog\/post\/2016\/07\/05\/service-tax-demand-notice-on-saurav-ganguly-quashed\/","url_meta":{"origin":346859,"position":2},"title":"Service Tax demand notice on Saurav Ganguly, quashed","author":"Sucheta","date":"July 5, 2016","format":false,"excerpt":"Calcutta High Court: Holding that the show cause notice dated 26th September 2011, demanding service tax from the Petitioner, was barred by limitation, the Court constituted by Justice Arijit Banerjee\u00a0 quashed it, as well as the Circular of the Central Board for Custom and Excise dated 26th July, 2010 which\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/06\/calcutta-court.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/06\/calcutta-court.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/06\/calcutta-court.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/06\/calcutta-court.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/06\/calcutta-court.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":295574,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/06\/29\/gujarat-hc-quashes-income-tax-assessment-order-legal-news\/","url_meta":{"origin":346859,"position":3},"title":"Reasonable and Adequate opportunity required to file reply to Income Tax Notice; Gujarat HC quashes Assessment Order","author":"Editor","date":"June 29, 2023","format":false,"excerpt":"A show cause notice-cum-draft assessment order was issued on 29-03-2022 to the petitioner at 11:41 a.m. and the petitioner was asked to submit a reply before 23:59 p.m. on the very same day.","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"gujarat high court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/gujarat-high-court-1.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/gujarat-high-court-1.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/gujarat-high-court-1.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/gujarat-high-court-1.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":343122,"url":"https:\/\/www.scconline.com\/blog\/post\/2025\/03\/07\/justice-harish-tandon-orissa-hc-cj-appointment-sc-collegium-legal-news\/","url_meta":{"origin":346859,"position":4},"title":"SC Collegium recommends appointment of Justice Harish Tandon as Chief Justice of Orissa HC","author":"Sucheta","date":"March 7, 2025","format":false,"excerpt":"A vacancy in the office of the Chief Justice of the High Court of Orissa arose consequent upon retirement of Justice Chakradhari Sharan Singh.","rel":"","context":"In "Appointments & Transfers"","block_context":{"text":"Appointments & Transfers","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/appointments\/"},"img":{"alt_text":"Justice Harish Tandon","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/03\/blog-26.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/03\/blog-26.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/03\/blog-26.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/03\/blog-26.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":344091,"url":"https:\/\/www.scconline.com\/blog\/post\/2025\/03\/21\/govt-appoints-justice-harish-tandon-biren-a-vaishav-cj-orissa-hc-acting-cj-gujarat-hc\/","url_meta":{"origin":346859,"position":5},"title":"Govt. appoints Justice Harish Tandon and Justice Biren A. 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