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2020 (9) TMI 217 - HC - VAT and Sales TaxLevy of penalty u/s 47(b) of the erstwhile Kerala Value Added Tax Act, 2003 - registration of Charitable Hospitals - Deferment of assessment proceedings under Section 25 of the 2003 Act, before finalisation of the proceedings under Section 47(b) of the Act - HELD THAT:- It is a fit case where the penalty order Ext.P6 to P16 are not sustainable. In M/s Fortis Healthcare Limited [2015 (2) TMI 1014 - PUNJAB & HARYANA HIGH COURT], the Division Bench of Punjab and Hariyana High Courts after noticing the provisions of Punjab Value Added Tax Act and as well as Power to Impose Sales Tax and VAT clause flowing from entry 54 of list to schedule 7 and Article 366 (29-A) of the Constitution of India did not accept the contention of the state for the applicability of doctrine of severance with regard to the services provided to the indoor patients involving medicines supply of surgical items, stents, implants valves with or without medical procedure or medical treatment. During all the aforementioned procedure supply of oxygen is also a sine qua non. All these services are in a packaged form and have to be consumed and cannot be segregated during the course of the treatment - Thus for all intends and purpose is rightly so held to be not exegible to tax. The cumulative reading of the reasoning assigned herein above would leave a irresistible conclusion that the penalty orders do not stand touchstone of reasonability or any deviation from the provisions of Section 18C of the Kerala Value Added Tax Act 2003, particularly when as per the proviso the petitioner-the charitable hospital is not required to obtain registration. Penalty Order quashed - petition allowed.
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