TaxTMI 
TaxTMI 
2026 (8) TMI 1600
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..... For the provision of such healthcare services, the appellants were registered with the Service Tax department. In the course of providing the medical services, the appellants also engage specialized doctors by providing infrastructural support, necessary for undertaking the medical services. The fees collected by the appellants from the patients were shared on the percentage basis with the doctors, for whom the infrastructural services were provided by the appellants and certain percentage was retained by them. Since the appellants did not pay service tax on the amount retained by them, out of the fees collected from the patients, the department had initiated show cause proceedings, alleging that the services provided by the appellants sh....
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....inbelow: "11. This precise issue was considered by the Tribunal in connection with the earlier show cause notice to the appellant which involved the period both before and after July 1, 2012. The Tribunal held, after a careful consideration of the conditions prescribed in the agreement, that the arrangement was for joint benefit of both the parties with shared obligations, responsibilities and benefits. 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....
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....nt for providing the infrastructure like room and certain other secretarial facilities to the doctors to attend to their work in the appellant hospitals. 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 attendi....
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....tive list tax regime, Notification No. 25/2011-ST exempted levy of service tax on health care services rendered by clinical establishments. We have examined the scope of the terms 'clinical establishments' and 'health care services'. xxx xxx xxx xxx 11. These two provisions available in Notification No. 25/2012 will show that a clinical establishment providing health care services are exempted from services tax. The view of the Revenue that is 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....