TaxTMI 
TaxTMI 
2024 (5) TMI 888
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....e demand proposed in the show cause notice with interest and penalty. 2. The appellant is a multi-specialty hospital and claims to be providing health care services. For rendering health care services to its patients, the appellant had undertaken services of a firm for pathology laboratory and a team of specialized doctors. Initially, the appellant had entered into a contract with NPIL Laboratory and Diagnostics Private Limited to run the existing pathology laboratory of the appellant in the hospital, but later in December, 2009 the appellant switched to an arrangement with OncQuest Laboratories Limited for providing pathology testing services. The appellant had paid them at a pre-decided percentage of the amount billed to the patient fo....
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....ue with them. To support this contention, learned counsel placed reliance upon the decision of the Tribunal in Mormugao Port Trust vs Commissioner of Customs, Central Excise & Service Tax, Goa [2017 (48) STR 69 (Tri.-Mumbai)]. Learned counsel for the appellant also very fairly stated that the appellant is not contesting the demand confirmed under 'renting of immovable property services'. 7. Learned authorized representative appearing for the Department has, however, submitted that the order passed by the Principal Commissioner does not call for any interference. 8. The first issue was considered by this Tribunal in Sir Ganga Ram Hospital and the relevant portion of the decision is reproduced below : "11. This precise issue wa....
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.... are of the considered view that such arrangement are for joint benefit of both the parties with shared obligations, responsibilities and benefits. The agreements do not specify the specific nature or list of facilities which can be categorized as infrastructural support to the doctors. The revenue model, as agreed upon between the contracting parties also, did not refer to any consideration attributable to such infrastructural support service. 6. The proceedings by the Revenue, initiated against the appellant hospitals, are mainly on the inference drawn to the effect that the retained amount by the hospitals out of total charges collected from the patients should be considered as an amount for providing the infrastructure like roo....
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....aid 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 services in such arrangements. ************ 9. Under negative list regime w.e.f. 1-7-2012, the health care services are exempt from service tax. Earlier the health care services were only taxed for specified category of hospitals and for specified patients during the period 1-7-2010 to 1-5-2011. With effect from 1-5-2011, health care services were exempt from service tax under Notification No. 30/2011-S.T. After introduction of negative list tax regime, Notification No. 25/2011-S.T. ex....
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....al in the case of the appellant has been subsequently followed by the Tribunal in the following four decisions: (i) M/s. Gujarmal Modi Hospital & Research Centre For Medical Sciences v. CST, Delhi-II [2019 (1) TMI 378-CESTAT NEW DELHI]. (ii) M/s. Fortis Healthcare (India) Limited v. CCE & ST-Chandigarh-I [2019 (9) TMI 462-CESTAT CHANDIGARH]. (iii) M/s. Ivy Health & Life Sciences Pvt. Ltd. v. CCE, Chandigarh-II/Ludhiana. [2019 (4) TMI 178-CESTAT CHANDIGARH] (iv) CCE & ST, Panchkula, Delhi-IV v. Alchemist Hospital Limited, Artemis Medicare Services Limited (Vice Versa) [2019 (3) TMI 1331-CESTAT CHANDIGARH]. 14. Thus, in view of the aforesaid decisions of the Tribunal, it has to be held that the Com....