Composite healthcare supply exemption versus separately billed inpatient medicines remains under consideration, with coercive recovery action temporarily restrained.

Separately itemised medicines supplied to inpatients at MRP raise a conflict between exemption for composite healthcare services and taxable sale of medicines. The note identifies unresolved issues concerning separate billing, actual collection of tax, and whether liability arises where tax is collected but not paid. The respondents were directed to file their opposition, the matter was listed for further hearing, and coercive action under the impugned order was restrained until the next hearing.

---

---

Issues: Whether separately itemised medicines charged at MRP to inpatients form part of exempt composite healthcare supply or amount to taxable supplies attracting liability for tax collected but not paid.

Analysis: A conflict between exempt composite healthcare services and the separate sale of taxable medicines was identified. The competing positions concerning separate MRP billing, actual collection of tax, and the applicability of the provision concerning tax collected but not paid require further consideration.

Outcome: The respondents were directed to file their opposition, the matter was listed for further hearing, and coercive action on the impugned order was restrained until the next hearing.

---