2006 (10) TMI 413

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....DRAN NAIR J.-Question raised is whether supply of intra ocular lens by petitioner hospital to patients in the course of cataract operation by replacing natural lens attracts sales tax under the Kerala General Sales Tax Act, 1963. It is common knowledge that cataract affects the natural lens making it partially or completely opaque and consequently affecting the vision. Treatment is cataract operat....

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....al sustaining the assessments confirmed in first appeal. The liability of a hospital for the purpose of sales tax was considered by this court in the decision in P.R.S. Hospital v. State of Kerala [2003] 11 KTR 176(1). This court held that hospitals selling medicines in the course of medical treatment will be liable to pay tax. Replacement of natural lens with artificial lens supplied by hospital ....

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....medical implants by including it in entry 145 of the First Schedule to the Act which is as follows: "145. Surgical equipments and instruments, medical implants and injection needles At the point of first sale in the State by a dealer who is liable to tax under section 5." 8% The contention raised by petitioner is that the Tribunal was wrong in holding that the lens sold by petitione....

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....provides for spectacles, glasses, goggles, lenses, etc., which are externally used. In other words, whatever is implanted in the body irrespective of its purpose, is a medical implant specifically covered by entry 145 of the First Schedule to the Act. This certainly takes in lens used in cataract surgery. Same is the position in regard to metal rods implanted to substitute or strengthen bones, ste....