Healthcare Provider Wins Tax Dispute, GST Exemptions Upheld with Directive for Reassessment Within 8 Weeks

HC allowed writ petition challenging tax demand against healthcare service provider. Court found partial exemptions applicable under GST notifications and remitted case back to tax authority for fresh assessment within 8 weeks. Petitioner must file proper reply within two weeks, with impugned order treated as corrigendum to show cause notice.

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Issues Involved:
The petitioner challenges an order by the respondent confirming tax, interest, and penalty under specific sections of the TNGST Act, 2017.

Details of the Judgment:

1. Tax Dispute: The petitioner, a hospital providing health services, claims exemption from GST for services and testing charges under Notification No.12/2017-CT (Rate) dated 28.06.2017.

2. Rent Tax Issue: The petitioner argues that Notification No.13/2017-CT (Rate) dated 28.06.2017 does not apply to renting commercial property, thus exempting them from tax on reverse charge basis.

3. Professional Fees: The petitioner contends that professional fees, mostly from the pre-GST period, are exempt under Notification No.12/2017-CT (Rate) dated 28.06.2017.

4. Jurisdictional Challenge: The petitioner asserts that the demand is without jurisdiction as it includes pre-GST turnover, erroneously compared with the profit and loss account and GST returns.

5. Respondent's Position: The Additional Government Pleader argues that the issues can be addressed through a statutory appeal under Section 107 of the TNGST Act, 2017, and raises questions of fact.

6. Court Decision: The court finds the petitioner entitled to exemptions under the mentioned notifications for specific items in the tax demand. It notes errors in considering turnover/income and remits the case back to the respondent for a fresh order within 8 weeks.

7. Remand Instructions: The petitioner must cooperate by filing a proper reply within two weeks, and the impugned order is treated as a corrigendum to the Show Cause Notice. The writ petition is allowed by way of remand without costs.

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