TaxTMI 
TaxTMI 
TaxTMI 
2023 (5) TMI 388
X X X X Extracts X X X X
X X X X Extracts X X X X
....ged in providing healthcare services to their both indoor and outdoor patients. For provision of the healthcare/medical services, the appellants engaged qualified doctors and para-medics, who are employed with the appellants on their panel of consultants. For providing such services, the appellants got themselves registered with the service tax department under the taxable category of "Health Services", defined under Section 65(105) (zzzzo) of the erstwhile Finance Act, 1994. The appellants charged the patients for various medical services/treatments imparted to them through such consulting doctors and/or medical staff employed by them. Besides, the appellants had also engaged the medical professionals/doctors on contractual basis as per th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ore the Tribunal. 2. Learned Advocate appearing for the appellants submitted that the issue arising out of the present dispute is no more res integra, in view of the following judgments delivered by the judicial forums. Thus, he contended that the adjudged demands cannot be confirmed on the appellants. [i] M/s. National Health and Education Society & Others Vs. Commissioner of Service Tax-III- 2019-TIOL-1575-CESTAT-MUM [ii] M/s. Sir Ganga Ram Hospital & Others Vs. Commissioner of Central Excise, Delhi-I -2018-TIOL-352-CESTAT-DEL [iii] M/s. Sir Ganga Ram Hospital & Others Vs. Commissioner of Service Tax, Delhi-I -2020-TIOL-1603-CESTAT-DEL [iv] M/s. Apollo Hospitals Vs. Commissioner of Central Excise, Raipur - 2018-TIOL-2174-CESTAT-D....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... is the recipient of service provided by the doctors inasmuch as the appellants actually availed the professional services of the doctors, for which they pay certain amount from the payment received from the patients. Hence, as a recipient of service, the liability to pay service tax cannot be fastened on the appellant. Furthermore, it is not the case of Revenue that the patients treated in the appellants hospital are having contractual relationship with the doctors and that the doctors raised the professional bills on them. Therefore, it cannot be said that the appellants are providing business support service to the doctors. We find that the issue arising out of the present dispute is no more open for any debate, in view of the above judg....
X X X X Extracts X X X X
X X X X Extracts X X X X
....en the patients are in the appellant hospital premises. The appellant hospital also manages the follow-up procedures and provide for further health service in the manner as required by the patients. As can be seen that the appellants hospitals are actually availing the professional services of the doctors for providing health care service. For this, they are paying the doctors. The retained money out of the amount charged from the patients is necessarily also for such health care services. The patient paid the full amount to the appellant hospitals and received health care services. For providing such services, the appellants entered into an agreement, as discussed above, with various consulting doctors. We do not find any business support ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e or arrangements for the production or sale of commodities" "...a professional activity must be an activity carried on by an individual by his personal skill and intelligence...... and unless the profession carried on by (a person) also partakes of the character of a commercial nature" the professional activity cannot be said to be an activity of a commercial character. " 8. Applying the above ratio and examining the scope of the tax entry for BSS, we are of the considered view that there is no taxable activity identifiable in the present arrangement for tax liability of the appellant hospitals. 9. Under negative list regime w.e.f. 01.07.2012, the health care services are exempt from service tax. Earlier the health care services were o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t anatomy or functions of both affected due to congenial defects, developmental abnormalities, injury or trauma." 11. These two provisions available in Notification No.25/2012 will show that a clinical establishment providing health care services are exempted from service tax. The view of the Revenue that in spite of such exemption available to health care services, a part of the consideration received for such health care services from the patients shall be taxed as business support service/taxable service is not tenable. In effect this will defeat the exemption provided to the health care services by clinical establishments. Admittedly, the health care services are provided by the clinical establishments by engaging consultant doctors i....