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2022 (12) TMI 1297 - AT - Service TaxTaxablity - services of healthcare or predominantly cosmetic in nature or not - Melasma - Birth Mark Treatment - Hypertrichosis Treatments - Hair Laser Comb Treatment - time limitation - HELD THAT:- The appellant undertakes diagnosis, which is an art and act of diagnosing disease by symptoms and thereafter prescribing the necessary remedial treatment, diagnosis is not a simple guesswork. The appellant clinics employs qualified doctors who have completed post graduation in Dermatology. The appellant first undertakes a diagnosis of a new patient, which is done by the qualified Dermatologist for which they collect consultation charges. Pursuant to diagnosis, treatment is prescribed, the appellant clinic also prescribed the preventive measure and/or post treatment precaution. Preventive care means a measure taken to prevent disease from occurring or recurring rather than curing it. The appellant clinics are ‘clinical establishment’ involved in Alopathy treatment, which is a recognised system of medicine in India. The appellant have been held to be clinical establishment by the Court below - the services provided by the appellant, save and except for ‘hypertrihosis treatments’ and ‘hair laser comb treatment’ fall under healthcare services and are accordingly exempt under Notification No. 25/2012-ST. Services rendered by the appellant assessee in respect of Hypertrichosis Treatments and Hair Laser Comb Treatment are held taxable under “Cosmetic and Plastic Surgery” service. Invocation of extended period of limitation - HELD THAT:- The appellant had maintained proper records of the transaction and has taken registration under the provisions of Service Tax and were making regular compliances. Few returns were pending for which plausible explanation has been given being non-availability of the concerned staff. The appellant has regularly deposited their admitted taxes and have also paid tax and filed pending ST-3 returns during the course of investigation. The demand has been raised by the Revenue based on the accounts and records maintained by them. Accordingly, the extended period of limitation is not invocable. Levy of penalties - HELD THAT:- As there is no suppression of facts with malafide intention to evade payment of service tax, penalty under Section 78 is set aside - the penalty of Rs. 10,000/- imposed under Section 77 of the Finance Act, 1994 for filing ST-3 late, is upheld. Appeal disposed off.
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