Service tax classification of medical practitioner engagement as Business Support Service held unsustainable; earlier Tribunal rulings controlled.

Service tax on the activity of engaging medical practitioners for patient treatment was held unsustainable when classified as Business Support Service. The Tribunal noted repeated non-appearance by the appellant and decided the matter on the available record in light of the statutory restriction on adjournments. On merits, it found the taxability issue no longer res integra and covered by earlier Tribunal decisions that had set aside similar demands. The impugned demand was therefore set aside and the assessee succeeded.

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Issues: Whether the demand of service tax by classifying the activity of engaging medical practitioners for patient treatment under "Business Support Service" was sustainable.

Analysis: The Tribunal noted that the appellant had repeatedly defaulted in appearance and proceeded to decide the matter on the available record in the light of the statutory restriction on grant of adjournments. On merits, it held that the taxability question was no longer res integra and stood covered by earlier Tribunal decisions, on the basis of which similar demands had been set aside. The impugned demand was therefore found unsustainable.

Conclusion: The service tax demand was set aside and the appeal was allowed in favour of the assessee.

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