The petition filed by Bar Council of Kerala highlighted that CBIC had issued two show cause notices.
The Bar Council of Kerala (BCK) has taken its case against Goods and Service Tax (GST) notices to the Kerala High Court, challenging orders from the Central Board of Indirect Taxes and Customs (CBIC). The case, titled Bar Council of Kerala v. The Additional Commissioner, saw a development on April 1st when Justice Dinesh Kumar Singh, a single-judge, issued a notice to CBIC. Additionally, the court ordered that no coercive action be taken against Bar Council of Kerala for the recovery of taxes, penalties, or interest until the matter is further reviewed.
The petition filed by Bar Council of Kerala highlighted that CBIC had issued two show cause notices. The first notice, dated April 22, 2022, addressed non-payment of service tax from April 2017 to June 2017 under the provisions of the erstwhile Finance Act, 1994. The second notice, dated September 12, 2023, concerned non-payment of GST from July 2017 to March 2022 under the Central Goods and Services Act, 2017.
In response to these notices, the Bar council stated its status as a statutory body created by the parliament under the Advocates Act, 1961. The council claimed exemption as a ‘government authority’ in accordance with the law.
Despite BCK’s arguments, CBIC issued an order confirming the show cause notices. This led BCK to move the High Court, citing the CBIC’s order as a case of non-application of mind.
According to the Bar Council, it functions as a ‘government authority’ and performs duties mandated by law. The council argued that the levies collected from advocates are statutory, with no service provider-service recipient relationship between registered advocates and BCK.
“The Advocates qualifying under the Advocates Act 1961 must be registered as per its provisions, and the Petitioner is bound to follow these regulations. When activities are mandated by law, they should not attract service tax,” the petition stated.
Based on these grounds, Bar Council of Kerala sought to quash the CBIC’s order for tax recovery, penalties, and interest.
The case will resume after the Court’s upcoming summer vacation. BCK was represented by Senior Advocate Anil D Nair and advocate Aditya Unnikrishnan, while CBIC was represented by its standing counsel, advocate Sreelal Warrier.
For more legal updates and news, stay tuned to developments in the Bar Council of Kerala’s case against GST notices.
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