TaxTMI 
TaxTMI 
2022 (12) TMI 1297
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....ailments and or skin conditions for issues like Warts, Acrochordons (skin tags), Hair Transplantation, Acne Vulgaris, Hirsutism, Hypertrichosis treatment, TAN, Melasma, Scar Revision treatments, Anti-aging treatments, Obesity/ Weight Loss treatment, Birth Mark treatment and Alopecia/ Hair Loss treatments (includes hair laser comb treatment). Some of the services of the appellant fall under health care service and some of the services fall under cosmetic treatment/ service. 3. The appellant had submitted a letter No.SHRPL/F&A/SRVT/ 2012-13/01 dated 09.07.2012 to the Range Superintendent of Service Tax about the category of services offered by them and as to taxable and non-taxable nature of the particular service. The appellant was guided by the opinion as to taxability of the particular service by the legal opinion circulated by 'Indian Association of Dermatologists, Venereologists & Leprologists". The appellant was regularly filing their returns and paying the admitted taxes till the period October, 2012. However, thereafter the person looking after the tax matters had left and no other person could be immediately engaged, as such some of the....
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....the amount already deposited was appropriated - Rs.1,49,60,014/- (Rs.1,36,07,711/- + Rs. 13,52,303/-). Further, amount of Rs.6,75,655/- deposited towards interest was confirmed and appropriated. Further, the penalty of Rs.18,27,709/- was imposed under Section 78. Penalty of Rs. 10,000/- was imposed under Section 77. The proposed penalty on the Medical Director Sh. Soma Prasanth was dropped. 7. Learned Counsel appearing for the appellant-assessee urges that the appellant as per legal opinion 'circulated by their Association', was discharging service tax on services like hair transplantation, TAN, anti ageing treatment and Obesity - weight loss treatment. Ld. Counsel has referred to the following legal provisions which are relevant for deciding the appeal. Section 65(105)(zzzzk) taxable service means - to any person, by any other person, in relating to cosmetic surgery or plastic surgery, but does not include any surgery undertaken to restore or reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, degenerative diseases, injury or trauma. Sub-section (zzzzo) provides, to....
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....reatment of scars (keiloids and atrophic); (ii) Treatment of viral warts, Molluscum Contagiosum, benign skin tumours; (iii) ACP (Nodulo Cystic Acne) treatment; (iv) Hirsutism treatment; (v) Subcision, biopsy, skin, hair and diet consultation and counselling has held that in respect of these services, the appellant has provided investigation, diagnosis and treatment of underlying diseases/ disorder by medicine, steroid, laser treatment, etc. in their clinic and as such these services are exempted under health care service. Also held, resultant enhancement of appearance is a consequence of the treatment of underlying diseases / disorder. Ld. Counsel also states that as regards hypertrichosis treatment the same is not being contested and the appellant concedes in respect of this service. Thus, the demand of Rs. 9,30,333/- is not contested under this head. 8.2 As regards service for Melasma, it is urged that melasma is an acquired symmetrical hyper melanic disorder of the face and is seen more commonly in women with particularly skin type. The most common areas for melasma to appear is....
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....t to pinpoint. The loss of hair also give mental trauma to the person who is suffering due to loss of look. The treatment inter alia includes diagnosis whether permanent damage to the follicles or can be restored. The main reason for occurring of hair loss is when immune system attacks hair follicles and may be brought on by severe stress. Hence, Dermatologist has to make a detail investigation for diagnosis which may include pathological test of the blood, scalp biopsy. Based on the investigation reports and history, appropriate treatment/ management is done which includes topical minoxidil, steroids, immunomodular like tacrolimus, oral medications like finasteride, iron and vitamin supplementation and procedures like PRP and light therapy. This can be done by qualified medical practitioner supported by para-medical staff in the clinical establishment. Thus, all these aforementioned services are exempt being health care services under clause 2 of Notification No. 25/2012. Learned Counsel further urges that the issue involved is wholly interpretational in nature. The appellant have maintained proper records and also informed the....
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....erations Incharge of Bangaluru Oliva Clinic, who has inter-alia stated that they do look enhancing treatment and cannot be called as life saving treatment and that they are not offering any treatment for trauma, burns, illness. 12. Learned AR further relies on the definition of healthcare services as given in para 2(t) of Notification No. 25/2012-ST wherein healthcare services means - any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy, in any recognised system of medicines in India and includes services by way of transportation of the patient to and from a clinical establishment, but does not include hair transplant or cosmetic or plastic surgery, except when undertaken to restore or to reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, injury or trauma. 12.1 Learned AR further urges that the procedure undertaken in the clinic of the appellant are basically to improve the aesthetical look of the person and for correcting any medical disorder. The clinic of the appellant are not for betterment of health condition which occur due to illness, trauma....
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....appellant have been held to be clinical establishment by the Court below. We further find that the services provided by the appellant, save and except for 'hypertrihosis treatments' and 'hair laser comb treatment' fall under healthcare services and are accordingly exempt under Notification No. 25/2012-ST. 14. So far the ground of limitation is concerned, we find that the appellant had maintained proper records of the transaction and has taken registration under the provisions of Service Tax and were making regular compliances. Few returns were pending for which plausible explanation has been given being non-availability of the concerned staff. The appellant has regularly deposited their admitted taxes and have also paid tax and filed pending ST-3 returns during the course of investigation. We further find that the demand has been raised by the Revenue based on the accounts and records maintained by them. Accordingly, we hold that the extended period of limitation is not invocable in the facts and circumstances. 15. To sum up- i) Revenue's appeal is dismissed being devoid of merits as discussed above; ii) Servic....