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2023 (1) TMI 391 - AT - Service Tax
Levy of service tax - providing business support service to doctors by providing facilities and administrative support to them - April 01, 2012 to March 31, 2013 - HELD THAT:- The patients will be billed according to the charges stipulated in the chargelist and out of the total fees (after the deduction of TDS) settled at the time of appointment, 78% would be paid to the doctors and the remaining 22% will be retained by the Hospital.
The Commissioner has found that the amount retained by the Hospital is towards the services rendered by the Hospital to the doctors for providing all the necessary facilities which are necessary and without which the doctors cannot perform their activities and therefore, the said service would be classifiable under section 65 (104) (c) as “support services of business and commerce” and taxable under section 65 (105) (zzzq) of the Finance Act 1994.
This precise issue had come up for consideration before two Benches of the Tribunal in Ganga Ram Hospital [2017 (12) TMI 509 - CESTAT NEW DELHI & 2020 (11) TMI 536 - CESTAT NEW DELHI]. The first decision rendered on December 06, 2017 [2017 (12) TMI 509 - CESTAT NEW DELHI] was considered in the subsequent decision rendered on September 02, 2020 [2020 (11) TMI 536 - CESTAT NEW DELHI] - The Tribunal, after a consideration of the conditions prescribed in the agreement held that the arrangement was for joint benefit of both the parties with shared obligations, responsibilities and benefits and, therefore, no service was provided by the hospital to the doctors.
Thus, the Commissioner was not justified in confirming the demand of service tax under the head business support services - appeal allowed.