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2024 (5) TMI 466 - KARNATAKA HIGH COURTExemption from service tax - legal services rendered by individual advocates or firm of advocates - HELD THAT:- As per Rule 2 of the Service Tax Rules, where Senior Counsel are engaged, the obligation to pay service tax is on the recipient of such services. If that were to be so, there is no obligation on the Senior Counsel to pay service tax - individual lawyers and Partnership of firm of Advocates, Senior Advocates are exempted from payment of service tax under certain circumstances. Levy of service tax - income from sale of books, apart from income from profession - Section 73 of the Finance Act, 1994 - reverse charge mechanism - HELD THAT:- The services rendered to a business entity with a turn over above rupees ten lakh would fall outside the purview of the exemption, however, in such of those cases also, in terms of Notification 30/2012-ST dated 20.06.2012, the liability is on the recipient by way of reverse charge mechanism - there is no factual adjudication, but on the basis of applicable law, the service rendered by advocates is exempt and even if it falls outside the exemption, the liability is on the recipient of the services and not the legal professional. Clearly in light of such narrow factual context the notices and orders are one without jurisdiction and challenge can be entertained directly irrespective of the alternate legal remedy that is available. As also laid down by the Apex Court in Radha Krishan Industries v. State of Himachal Pradesh and Others [2021 (4) TMI 837 - SUPREME COURT] that the High Court can entertain a writ petition despite there being an effective alternative remedy when the orders/proceedings impugned are wholly without jurisdiction. It would be futile exercise in relegating the petitioners to avail of statutory remedy. It is a case which provides for entertainability of the writ petition on the settled legal position and on the ground that the proceedings are one without jurisdiction and hence can be entertained - Hence, the legal position not being in dispute, the contention of learned counsel for the Revenue requires to be rejected. Levy of service tax - income from consultation fee - HELD THAT:- The income from such service by an Advocate is exempt and even if it falls outside the exemption, it is the recipient who has to pay on the basis of reverse charge mechanism and accordingly, the initiation of proceedings are one without jurisdiction insofar as claim of service tax as regards consultation fee - the taxable event of sale of books would fall within the category of sale of goods and is outside the purview of service tax. Levy of service tax - income from profession as well as income from services rendered as a Notary - HELD THAT:- The document furnished by the petitioner would indicate that it is income from profession as well as income from services rendered as a Notary. This is evident from the profit and loss account entry. Memo is filed on 08.02.2024 stating that income is only from legal profession - such income is exempt from service tax and even otherwise, recipient would have to pay on reverse charge mechanism. Accordingly, the order in original is one without jurisdiction. Appeal allowed.
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