Kerala High Court Stays GST Recovery Proceedings Against Bar Council Of Kerala

Justice Dinesh Kumar Singh ordered that no coercive steps shall be taken against the Bar Council of Kerala.

“As an interim measure, it is provided that till the next date of posting, no coercive steps would be taken in pursuance to Ext.P2 show cause notice and Ext.P6 assessment order”

The Court passed the interim order in a plea moved by the Bar Council of Kerala challenging the assessment order issued by the Additional Commissioner for recovery of service tax, penalty and interest.

The Bar Council was issued with show cause notice claiming GST after the implementation of the GST Act. The Bar Council had submitted replies contending that they are a statutory body and was exempted from payment of tax. Without considering this, the Additional Commissioner issued assessment order for recovery of tax, along with interest and penalty, the BCI contended.

In the plea, the Bar Council of Kerala has challenged the assessment order and submitted that it is a statutory body created by the Parliament under the Advocates Act, 1961 and not a mere person for recovery of service tax. It is also stated that the Bar Council being a statutory body performs statutory obligations and would get service tax exemption since it falls under the 'Governmental Authorities' category.

It is submitted that when recovery of the tax itself is challenged, there is no scope for demand of interest and penalty. The plea also stated that no similarly placed governmental body was issued with similar proceedings and that the entire proceedings were illegal and void ab initio. 

The Court has thus granted a stay on the proceedings based on the assessment order for a period of two months.

The Standing Council for Central Board of Excise has sought four weeks time to get instructions.

The matter has been posted to May 31, 2024.

Counsel for Petitioner: Senior Advocate Anil D Nair, Advocate Aditya Unnikrishnan

Counsel for Respondents: Standing Counsel Sreelal N Warrier

Case title: Bar Council of Kerala v The Additional Commissioner

Case number: WP(C) 13133/2024

Click Here To Read/Download The Order