2023 (3) TMI 693 - AT - Service Tax

Levy of service tax - business auxiliary service - appellant engages professional/doctors/ consultants on contractual basis - HELD THAT:- This precise issue had come up for consideration before two Benches of the Tribunal in Ganga Ram Hospital. The first decision rendered on M/S SIR GANGA RAM HOSPITAL, BOMBAY HOSPITAL & MEDICAL RESEARCH CENTRE, APPOLLO HOSPITALS, M/S MAX HEALTH CARE INSTITUTE LTD VERSUS CCE DELHI-I, CCE&ST INDORE, CCE&ST RAIPUR, CST NEW DELHI AND CST DELHI VERSUS M/S INDRAPRASTHA MEDICAL CORPORATION LTD [2017 (12) TMI 509 - CESTAT NEW DELHI] was considered in the subsequent decision in M/S SIR GANGA RAM HOSPITAL VERSUS COMMISSIONER OF SERVICE TAX, NEW DELHI [2020 (11) TMI 536 - CESTAT NEW DELHI].

Paragraphs 5,6,9 and 11 of the first decision rendered by the Tribunal on December 06, 2017 relate to the period before and after July 01,2012. 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.

The Commissioner was not justified in confirming the demand of service tax under the head "business support services".

The order dated March 20, 2017, passed by the Commissioner, therefore, cannot be sustained and is set aside - Appeal allowed.