TMI Blog2015 (11) TMI 977X X X X Extracts X X X X X X X X Extracts X X X X ..... ee. Whether amounts received as healthcare receipts/self-funded schemes are liable to tax as BAS - Held that:- This is a self-funded scheme and implementation lies with Special Purpose Trust named 'Yeshasvini Trust' of which the appellant is also a part. This is a contributory scheme wherein the beneficiaries contribute a small amount of money every year and beneficiaries were offered cashless treatment in over 135 hospitals in Karnataka. - The service provided by the appellants to corporate clients as submitted is a service limited to the healthcare of the employees of corporate clients. It cannot be said that this service is provided on behalf of a corporate client to the employees. Therefore we agree with the submission that this serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtain amounts under the heads discounts, healthcare, receipts and self-funded schemes. In all these cases, they have not paid service tax on the consideration received. Accordingly proceedings were initiated and after completion of due process, demand for service tax of ₹ 2,15,63,970/- with interest was confirmed for the period from August 2002 to March 2006. An amount of ₹ 16,29,562/- was demanded towards BAS from August 2002 to March 2006. 2. There is no dispute about confirmation of demand for service tax on Insurance Auxiliary Service and the entire amount of tax along with interest has been paid and it is their claim that approximately an amount of ₹ 4.5 lakhs was paid in excess of the liability. 3. The appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x prior to 01/05/2006. 5.1. The nex demand has arisen on the ground that amounts received as healthcare receipts/self-funded schemes are liable to tax as BAS. The healthcare receipts is the amount received for service provided by the appellants to corporate clients such as advise, monitoring, implementing, verifying claims received from the hospitals and submitting various reports to the client. This is the service which is limited to the healthcare of the employees of corporate clients. The second item which is called as self-funded schemes by the appellants is the service rendered by them in implementing a landmark initiative for the farming community handled by the Govt. of Karnataka named as Yeshasvini Co-operative Farmers Health Ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Scheme (Yeshaswini) makes it clear that according to which M/s.Health, inter alia, are required to maintain data to beneficiaries, assist to issue identity cards, identify networking hospitals, process the request of hospitals for pre-authentication, proposed course of treatment, liaison with hospitals for smooth implementation of scheme, verify claims received from hospitals and arrange payments/remittances etc. Therefore it is the contention of the department that the services as such would fall within the ambit of Business Auxiliary Service as defined under Section 65(19) of the Finance Act, 1994. 5.2. The question that arises is whether the services rendered and discussed above can be treated as taxable services as envisaged under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and therefore it cannot be said that a BAS is being provided. 5.4. The above discussion would show that appellants have made out a case that demand cannot be sustained. Therefore the appeal is allowed with consequential relief, if any, to the appellant. 6. As regards insurance auxiliary service, the appellants have paid the entire amount with interest and an excess amount of more than ₹ 4.5 lakhs has also been paid before the issuance of show-cause notice. Since they have registered and have been paying the tax and have paid the entire amount before the issue of show-cause notice, according to provisions of Section 73 of Finance Act, 1994, penalty under Section 76 is not imposable. As regards the other two demands amounting to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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