TMI Blog2017 (7) TMI 542X X X X Extracts X X X X X X X X Extracts X X X X ..... iring legal practitioners and law firms to compulsorily get registered under the CGST, IGST and/or DGST Acts. Those seeking voluntary registration would anyway avail of the facility under Section 25 (3) of the CGST Act (and the corresponding provision of the other two statutes). There is therefore prima facie merit in the contention of Mr Mittal that the legal practitioners are under a genuine doubt whether they require to get themselves registered under the three statutes. In the circumstances, the Court directs that no coercive action be taken against any lawyer or law firms for non-compliance with any legal requirement under the CGST Act, the IGST Act or the DGST Act till a clarification is issued by the Central Government and the GNCTD and till further orders in that regard by this Court. It is clarified that any lawyer or law firm that has been registered under the CGST Act, or the IGST Act or the DGST Act from 1st July, 2017 onwards will not be denied the benefit of such clarification as and when it is issued. It is further clarified that if an appropriate clarification is not able to be issued by the Respondents 1 and 2 by the next date, the Court will proceed to consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... NCTD essentially on the ground that these notifications are contrary to the recommendations of GST Council. The petition also challenges the constitutional validity of Section 9 (4) of CGST Act, Section 5(4) of The Integrated Goods and Services Tax Act, 2017 (IGST Act) and Section 9 (4) of DGST Act. He points out that this provision was not to be found in the model laws prepared by the GST Council. It seeks to collect GST on reverse charge basis from a person registered under the CGST Act, IGST Act or DGST Act in respect of goods supplied and services received by such person from a person who has not been so registered. Mr Mittal submits that this provision lacks a proper corresponding machinery provision to facilitate its implementation, and is therefore ultra vires the statute. According to him this provision is incapable of being complied with and is bound to cause undue hardship to the persons registered under the aforementioned three statutes. 6. In addition the above main points of challenge, in support of his plea for urgent interim relief Mr Mittal submits that under Article 279 A of the Constitution of India, the GST Council is a constitutional body. Article 279 A (4) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . (E).- In exercise of' the powers conferred by sub-section (3) of section 9 of the Central Goods and Services Tax Act 2017 ( 12 of 20 17), the Central Government on the recommendations of the Council hereby notifies that on categories of supply of services mentioned in column (2) or the Table below supplied by a person as specified in column (3) of the said Table, the whole of central tax leviable under section 9 of the said Central Goods and Services Tax Act, shall be paid on reverse charge basis by the recipient of the such services as specified in column (4) of the said Table:- S. No. Category of Supply of Services Supplier of Service Recipient of Service 2 Services supplied by an individual advocate including a senior advocate by way of representational services before any court, tribunal or authority, directly or indirectly, to any business entity located in the taxable territory including where contract for provision of such service has been entered through another advocate or a firm of advocates or by a firm of advocates, by way of legal services to a bus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on, though not liable to be registered under Section 22 or Section 24 of the CGST Act to get himself registered voluntarily under the CGST Act. However, Mr. Mittal is clear that as far as he is concerned, he does not wish to be so registered. His concern is that since his registration under the FA continues, by virtue of Section 22 (2) of the CGST Act he is under an obligation to get registered under the CGST Act and thereby be subject to a whole series of legal obligations including having to pay tax on reverse charge basis under Section 9 (4) of the CGST Act and DGST Act and Section 5(4) of the IGST Act. He states that the prevalent uncertainty is causing great inconvenience to him and other legal practitioners in the matter of receiving and rendering services. 13. Both Mr. Narula, learned counsel appearing on behalf of the Union of India and Mr. Gautam Narayan, learned counsel for the GNCTD seek a short adjournment to take instructions from the respective governments to clarify the legal position in respect of the above impugned notifications. In particular they seek time to obtain a clarification whether all legal services (not restricted to representational services) provid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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