TaxTMI 
TaxTMI 
2023 (5) TMI 521
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.....2017 passed by the Additional Commissioner has been set aside and the appeal filed by the respondent hospital namely M/s. Maharaja Agrasen Hospital Charitable Trust, New Delhi has been allowed. The Additional Commissioner had confirmed the demand of service tax under "business auxiliary service" and "renting of immovable property service" with penalty and interest. 2. The appellant is running a hospital since the year 1988. It claims to have a facility of 410 beds, doctors with specialization in different fields. According to the appellant, it engages doctors as consultants, resident doctors , senior resident doctors and doctors on internship basis and whenever medical services are provided to a patient, the appellant raises a bill toward....
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.... The Tribunal, after a consideration of the conditions prescribed in the agreement, held that the arrangement was for joint benefit of both the parties with shared obligations, responsibilities and benefits and, therefore, no service was provided by the hospital to the doctors. The relevant portion of the decision is reproduced below: "5. The claim of the Revenue is that the appellants have provided infrastructural support service to various doctors. As a consideration for such support, they have retained a part of the amount collected from visiting patients. We have perused some of the agreements/appointment arrangements entered into between the appellants hospitals and the individual doctors. Typically, the arrangement contains details ....
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....spitals. We find this is only an inference and not coming out manifestly from the terms of the agreement. Here, it is very relevant to note that the appellant hospitals are engaged in providing health care services. This can be done by appointing the required professionals directly as employees. The same can also be done by having contractual arrangements like the present ones. In such arrangement, the doctors of required qualification are engaged/contractually appointed to provide health care services. It is a mutually beneficial arrangement. There is a revenue sharing model. The doctor is attending to the patient for treatment using his professional skill and knowledge. The appellants hospitals are managing the patients from the time they....
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....d by clinical establishments. We have examined the scope of the terms 'clinical establishments' and 'health care services'. The notification defines these terms. The term 'clinical establishments' is defined as below: "Clinical establishment" means hospital, nursing home, clinic, sanatorium or any other institution by whatever name called, that offers services or facilities requiring diagnosis or treatment of care for illness, injury, deformity, abnormality or pregnancy in any recognized system of medicines in India, or a place established as an independent entity or a part of an establishment to carry out diagnostic or investigative services of diseases." Xxxx xxxx xxxx 11. These two provisions availa....