The Andhra Pradesh High Court has become the third high court after the Delhi and Gauhati High Courts to stay the imposition of service tax on lawyers practicing in courts made applicable during this year’s budget under the Finance Act 2011.
The high court in Hyderabad, while hearing an application filed in a writ petition against service tax on lawyers, passed an order yesterday to restrain the government from giving effect directly or indirectly or acting upon the impugned provision, according to ITAT Online.
The reason court cited for allowing an interim stay was that of other high courts having granted stay in similar circumstances in prior writ petitions.
In April earlier the Gauhati High Court had heard the challenge to service tax levy on “Legal Consultancy Services” observing the matter fit for an in-depth scrutiny and fixed 25 May as the next date of hearing.
The Delhi High Court was the first court to have granted a stay after a writ petition came up before it for hearing filed by the Delhi High Court Bar Association.