TMI Blog2023 (1) TMI 391X X X X Extracts X X X X X X X X Extracts X X X X ..... I 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. - Service Tax Appeal No. 52193 of 2016 - FINAL ORDER NO. 50017/2023 - Dated:- 2-1-2023 - MR. DILIP GUPTA, PRESIDENT AND MR. P. V. SUBBA RAO, MEMBER (TECHNICAL) Shri Ruchir Bhatia, Advocate for the Appellant Shri Ravi Kapoor, Authorised Representative of the Department ORDER This appeal assails the order dated March 31, 2016 passed by the Commissioner whereby the show cause notice dated April 22, 2013 issued for the period of April 01, 2007 to March 31, 2013 and the show cause notice dated May 22, 2013 issued for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with penalty and interest for the following reasons: 40. I find after the perusal of the above mentioned agreement that, at entry numbers 11 12 of the agreement, it has been clearly stated that out of the total fees collected from the patients, 22% of the total fees would be retained by the hospital (after the deduction of TDS) and balance 78% of the total fees collected from the patient would be disbursed to the doctors. This rate may be changed from time to time. Also it has been expressly stated that no direct collection would be allowed and that the patients would be billed in strict compliance of stipulated charges in the list. That these services are basically infrastructural support services to the doctors, which include secretarial support, consultation chamber and other facilities. Therefore, to say that the hospital is not providing any services to the doctors is only a figment of imagination of the Notice. xxxx xxxx xxxx 50. On the basis of above discussion and findings, I am of the considered view that money retained by the Noticee is towards services rendered by them for providing all the related facilities which are necessary and without which the do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Noticee under Business Support Services . (emphasis supplied) 6. The Commissioner also confirmed the demand of service tax under the head renting of immovable property services. 7. This appeal has been filed only to contest the confirmation of demand under the head of business support service , as according to the learned counsel for the appellant, service tax for renting of immovable property has already been deposited. 8. Shri Ruchir Bhatia, learned counsel appearing for the appellant placed reliance upon the decision of this Tribunal in Sir Ganga Ram Hospital and Ors. vs. CCE, Delhi-I and Ors. [2018 (11) G.S.T.L.427 ] as also a subsequent decision of the Tribunal in M/s. Sir Ganga Ram Hospital vs. Commissioner of Service Tax, New Delhi [2020 (11) TMI 536-CESTAT NEW DELHI ] to contend that demand of service tax could not have been confirmed under the head of business support service . 9. Shri Ravi Kapoor, learned authorized representative appearing for the department supported the impugned order. 10. The submission advanced by the learned counsel for the appellant and the learned authorized representative appearing for the Department have been consid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arges be taken from him/ her. 14. Patient seen in the hospital will be admitted to this hospital only. 15. You will be required to achieve the target of admission as may be allotted to you. 16. In case a second opinion/ consultation in the specialty is required, it is mandatory that the consultants on regular panel shall be called. If a consultant from outside is called, this has to be done with prior permission of the Chief Executive Officer. However in emergency this can be done subsequently. 17. You are required to visit all your patients whether General or Private daily by 12.00 noon and attend all the emergency calls immediately. 18. You will not be permitted to have any other attachment. You will be admitting all your patients to this Hospital only. 19. You will be required to attend at least 80% of the clinical meetings, get-together and participate in the hospital functions/ programmes. 20. You will be required to follow amended Rules, Office Orders may be circulated from time to time. 21. You will be expected to apply at least one month before the expiry of your contract for its renewal. 22. You will be required to attend free of charge all hospi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntains details like duration of time for consultation, the obligations on the part of the doctors, fee to be paid, procedure for termination of agreement, etc. The agreements generally talk about appointment of consultants to provide services to the patients who will visit or admitted in the appellants hospital. The doctors will receive a percentage of share of the collection from the patients in case of consultation, procedures and surgeries done by them. In some cases, there is a provision for treating patients from low economic background without any financial benefits. On careful consideration of various terms and conditions and the scope of arrangement, we are of the considered view that such arrangement are for joint benefit of both the parties with shared obligations, responsibilities and benefits. The agreements do not specify the specific nature or list of facilities which can be categorized as infrastructural support to the doctors . The revenue model, as agreed upon between the contracting parties also, did not refer to any consideration attributable to such infrastructural support service. 6. The proceedings by the Revenue, initiated against the appellant hospitals, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DSTX/0055/2011 After introduction of negative list tax regime, Notification No. 25/2011-ST: MANU/DSTX/0065/2012 exempted levy of service tax on health care services rendered by clinical establishments. We have examined the scope of the terms 'clinical establishments' and 'health care services'. The notification defines these terms. The term 'clinical establishments' is defined as below: Clinical establishment means hospital, nursing home, clinic, sanatorium or any other institution by whatever name called, that offers services or facilities requiring diagnosis or treatment of care for illness, injury, deformity, abnormality or pregnancy in any recognized system of medicines in India, or a place established as an independent entity or a part of an establishment to carry out diagnostic or investigative services of diseases. Xxxx xxxx xxxx 11. These two provisions available in Notification No. 25/2012: MANU/DSTX/0065/2012 will show that a clinical establishment providing health care services are exempted from service tax. The view of the Revenue that in spite of such exemption available to health care services, a part of the consideration received ..... X X X X Extracts X X X X X X X X Extracts X X X X
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