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TMI Blog2025 (5) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 2,14,600/- for the Financial Year 2015-16 in terms of Section 73 of the Finance Act, 1994. This was followed by the notice of recovery dated 28th January, 2025 amounting 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 (Annexure-3 & 5 respectively). 3. The Petitioner prays to quash the aforesaid notices with a direction to the Opposite Parties restraining them from such action on their part since he is an individual legal practitioner. 4. The Department (Opposite Parties) have filed their counter stating that the demand-cum-show cause notice under Annexure-3 was issued to the Petitioner under the provisions of Section 73 of the Financ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rection of the court dated 31st March, 2021 the Department filed its affidavit enclosing copy of its instruction issued on 9th April, 2021 and 15th April, 2021 reiterating, inter alia, 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 to a business entity with a turnover up to rupees ten lakhs in the preceding financial year are exempted from levy of service tax. Paragraph 4 to 6 of said instructions as quoted in order dated 22nd April, 2021 of WP(C) No.27727 of 2020 are reproduced below:- "4. In view of above it is clearly instructed to all the field formations that utmost diligence may be taken while initiating verification against the ent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vy 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 (Annexure-3) and the order of recovery dated 28th January, 2025 (Annexure-5) are quashed to the extent it relates to demand of service tax from the income of the Petitioner from his profession as an individual lawyer. At the same time we notice that the Petitioner has disclosed his income from house property in the income tax return for the Assessment Years 2018-19 and 2020-21. So it is open for the Department (Opposite Parties) to proceed in respect of the income from house property, if any applicable, to levy service tax in accordance with law. 8. With aforesaid observation and direction the writ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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