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2018 (1) TMI 168 - AT - Service TaxDemand of service tax - Health Services which was in force for a limited period from 1.7.2010 to 30.4.2011 - The expenses incurred for treatment was paid directly by the insurance company namely Star Health and Allied Insurance Co. Ltd. The appellants paid service tax under the said category of services after making some deductions. - Held that: - similar issue decided in the case of M/s. Arvinth Hospitals Versus The Additional Commissioner Central Excise, The Joint Commissioner Central Excise [2016 (11) TMI 238 - MADRAS HIGH COURT], where it was held that unless and until the Scheme has been examined in full, the respondent cannot come to a conclusion that the nature of transaction done by the petitioner would fall within the definition of Section 65(105)(zzzzo) of the Finance Act. Therefore, this Court is of the view that such an exercise is required to be done before coming to the conclusion as to what is the nature of service rendered and whether it is an Insurance Policy or it is a Welfare Scheme - the services rendered by the appellant would fall under taxable category of health service, has to be given reconsideration - matter remanded to the adjudicating authority who will reconsider the issue whether the services are taxable or not. Extended period of Limitation - Held that: - As the main issue is remanded to the adjudicating authority, we leave this issue open with a direction to the adjudicating authority to decide the issue of limitation also in the denovo adjudication. Penalty - Held that: - the issue being an interpretational one, also since the services were taxable for a limited period and as there was considerable confusion as to whether the services rendered under a scheme floated by the Government would fall within the category of Health Services for levy of service tax, we find that the appellant has put forward reasonable cause for not discharging service tax on the entire value raised in the Bill. It is a fit case to invoke section 80 of the Finance Act - penalty set aside. Appeal allowed by way of remand.
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