TaxTMI 
TaxTMI 
2025 (12) TMI 222
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....grees Healthcare Pvt Ltd and Clearview Healthcare Pvt Ltd (collectively known as Diagnostic Service Providers or 'DSPs') for providing the pathology lab and other diagnostic services in the hospital. Further, as per the agreements, the Appellant provides basic amenities such as space, water, electricity etc to DSPs for functioning and DSPs install and operate their equipment in the Appellant's premises. DSPs render services to patients within the hospital premises and outside the hospital premises. The Appellant raises the invoice on patients for diagnostic services rendered in the hospital and shares for receipts with DSPs in an agreed percentage for which DSPs also raise monthly bill for collection. This amount is paid to DSPs after deducting the administrative and up-keep charges. DSPs also share the revenue earned by rendering services outside the hospital premises to patients referred by the Appellant in an agreed percentage. The department entertained the view that the Appellant are providing Business Support Services ('BSS') to DSPs therefore, the Appellant are liable to pay the service tax under BSS. Two show cause notices, dated 09.10.2013 and 07.10.2014, were issued to th....
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....dal institute of Cancer & Research 2015-16 to 2017-18 (till June 2017) Service Tax on services provided to DSPs and Doctors Order-in-Appeal No. Appl/PKL/ST/248/2018-19 dated 26.02.2019 passed by the Commissioner (Appeals) NC Jindal Charitable Trust 2015-16 to 2017-18 (till June 2017) 4.1 She further submits that the issue involved in the present case has been settled in the Appellant's favour till the Tribunal level, as mentioned in the above table, and the department has not filed any appeal against the above-mentioned Orders, therefore, the said Orders have attained finality. She further submits that the department deviated from its stand while passing the impugned order confirming the demand on the same issue against the Appellant. She also submits that it is a settled law that the department cannot take contrary stands on the same issue for the same assessee. For this, she places reliance on the following decisions: * CCE, Pune-II vs. S S Engineers - 2023 (386) ELT 192 (SC) * Rosmerta Technologies Ltd vs. CCE - 2020-TIOL-916CESTAT-CHD affirmed by Hon'ble Supreme Court - 2021-TIOL-24-SC-ST-LB 4.2 The learned Counsel further submits that the....
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....00 CESTAT Chandigarh * Aashlok Nursing Home Pvt Ltd vs. CCE - 2024 (5) TMI 888 CESTAT New Delhi * Apollo Hospitals International Ltd vs. CCE - 2023 (12) TMI 953 CESTAT Ahmedabad * M/s Sir Ganga Ram Hospital vs. CST - 2020 (43) GSTL 390 (Tri. Del.) * M/s Sir Ganga Ram Hospital, Bombay Hospital & Medical Research Centre, Appollo Hospitals, M/s Max Health Care Institute Ltd vs. CCEs & CSTs and CST Delhi vs. M/s Indraprastha Medical Corporation Ltd - 2018 (11) GSTL 427 (Tri. Del.) 4.3 The learned Counsel further submits that the services, if any, rendered by the Appellant are not BSS, the same qualify as 'healthcare services'. She further submits that in the case of OP Jindal Institute of Cancer & Research vs. CCE, Rohtak - 2024 (10) TMI 824 CESTAT Chandigarh, this Tribunal has itself held that the Appellant is not providing services under BSS. She also relies on the following decisions wherein also similar placed transactions have been held to be not exigible to service tax under BSS: * M/s Fortis Healthcare India Ltd vs. CCE - 2019 (9) TMI 462 CESTAT Chandigarh * M/s Ivy Health & Life Sciences P Ltd vs. CCE - 2019 (4) TMI 178 C....
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....the Appellant. We find that the issue involved in the present appeal, relating to revenue sharing arrangements between the Appellant and the DSPs, is no longer res integra as the Tribunal as well as the departmental Appellate Authority, for the earlier and the subsequent periods, have decided the issue in favour the Appellant vide the Orders as cited in table (in para 4 above) by holding that revenue sharing arrangements are not subject to service tax under the BSS. Further, we note that the department has not filed any appeal against the above-mentioned Orders, therefore, the said Orders have attained finality and therefore, the department cannot take contrary view on the same issue for the same assessee as held in the case of CCE, Pune-II vs. S S Engineers (supra). Further, we find that this Tribunal in the case of OP Jindal Institute of Cancer & Research (supra) vide Final Order No. 60579/2024 dated 16.10.2024, has considered the identical issue along with the agreements entered into by the Appellant with the DSPs and has held that revenue sharing arrangements between the Appellant and the DSPs are not subject to service tax; the relevant findings of the Tribunal are reproduced ....
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....etween the parties clearly shows that the contracts between the appellant and various DSPs are on principal-to-principal basis and are in the nature of sharing-revenue. As per the contracts, the appellant is required to provide infrastructure and DSPs are required to install their equipments; and the revenue earned from the patients is shared between the appellant and the DSPs and no taxable service is being provided by the appellant to DSPs. Here, it is pertinent to extract the relevant clauses of such agreements with regard to sharing of revenue. The relevant clauses of one of the contracts with one of DSPs, Dr. Lal Pathlabs Pvt Ltd ('LPL'), is reproduced herein below: "Revenue Sharing:- ⮚ "The Hospital" and LPL will share the net revenue as below. Net Revenues for this purpose means all revenues earned out of pathology tests of the hospital subject to discounts, rebates etc. ⮚ In respect of the work referred by the Hospital and are carried out at the lab in the hospital itself as per the attached Annexure C, LPL and the Hospital will share revenue in the proportion of 50:50. ⮚ In respect of the work referred by the Hospita....
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....lowed the DSPs to install their equipment's and machines and operate their respective centers in the hospital. In fact, diagnostic services are provided by the Hospital through the patients using the expertise and machinery of the DSPs. All reports of such diagnostic services are issued under the name of the Hospital. Further, the billing of such services is also done by the appellant's Hospital to the patients directly. Further, the entire revenue from the diagnostic centers is accounted for in the books of account as 'revenue of the appellant' and the appellant pays for the services provided by the DSPs to the appellant after retaining its own percentage. It clearly shows that the service, if any, has been provided by DSPs to the appellant and not by the appellant to DSPs. 10. We also note that it is the appellant who established the Hospital and providing healthcare services to the patients and DSPs are, in fact, a part of the appellant as a joint venture who are providing diagnostic services to the patients; it is the patient, who is ultimate recipient and beneficiary of medical services in the appellant's Hospital. In fact, the Hospital provides the healthcare service....