TMI Blog2023 (3) TMI 693X X X X Extracts X X X X X X X X Extracts X X X X ..... d, 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. - Service Tax Appeal No. 50919 of 2017 - FINAL ORDER NO. 50321/2023 - Dated:- 2-3-2023 - MR. DILIP GUPTA, PRESIDENT AND MS. HEMAMBIKA R PRIYA, MEMBER (TECHNICAL) Mr. Shantanu Kumar, Mr. Shashwat Arya , Advocates for the Appellant Shri Harshvardhan, Authorized Representative for the Department ORDER This appeal assails the order dated March 20, 2017 passed by the Commissioner whereby the show cause notice dated October 20, 2014 issued for the period of April 2009 to March 2013 has been adjudicated upon. The Commissioner has confirmed the demand of service tax under business auxiliary service with penalty and interest. 2. The appellant is running a hospital. It claims to have a facility of beds and doctors with specialization in different fields. According to the appellant, it engages professional/doctors/ consultants on contractual basi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tly by the Senior, Associate and Junior Consultants. 8. You will ensure timely discharge of patients. 9. It will be the responsibility of the Senior Consultant to ensure that patient files are documents daily. 10. In surgical discipline, the cold surgery should be planned ensuring that patient files are documented daily. 11. You will charge fees as per schedule laid down by the hospital from time to time. You will enter your charges in case sheet as per the procedure. No dues will be collected by you directly from the patient or his relatives/friends. 12. You will take night round of the hospital once in a month as per the roster issue by the hospital administration. 13. It will be mandatory to put on white coat while on duty in the hospital. 14. Junior Consultants preferably will have residence within a radius of 5 kms from Jaipur Golden Hospital. 15. You will be paid Professional fee in accordance with the existing policy of the hospital. 16. You will ensure that the equipment of the hospital entrusted to you for use are handled properly. 17. You will ensure that the investigative facilities available in the hospital are utilized to the maximum for y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hen due and deduct the premium amount from the Consultant s income. 31. It will be mandatory for you to have valid registration with Delhi Medical Council. 32. You will ordinarily retire on attaining the age of 60 years. Further renewal of your term will be based on assessment of your overall performance. Consultants who are attached only to Jaipur Golden Hospital will be granted extra weightage at the time of renewal of their contract. 33. This contract may be terminated on one month s notice on either side. However, in case of gross unethical conduct, negligence in performance of duties or acts affecting the reputation of the hospital, the appointment is liable to be terminated without notice. 8. This precise issue had come up for consideration before two Benches of the Tribunal in Ganga Ram Hospital. The first decision rendered on December 06, 2017 was considered in the subsequent decision rendered on September 02, 2020. 9. 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 arr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the required professionals directly as employees. The same can also be done by having contractual arrangements like the present ones. In such arrangement, the doctors of required qualification are engaged/contractually appointed to provide health care services. It is a mutually beneficial arrangement. There is a revenue sharing model. The doctor is attending to the patient for treatment using his professional skill and knowledge. The appellants hospitals are managing the patients from the time they enter the hospital till they leave the premises. ID cards are provided, records are maintained, all the supporting assistance are also provided when the patients are in the appellant hospital premises. The appellant hospital also manages the follow-up procedures and provide for further health service in the manner as required by the patients. As can be seen that the appellants hospitals are actually availing the professional services of the doctors for providing health care service. For this, they are paying the doctors. The retained money out of the amount charged from the patients is necessarily also for such health care services. The patient paid the full amount to the appellant ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lishment on the ground that they have supported the commerce or business of doctors by providing infrastructure. We find that such assertion is neither factually nor legally sustainable. (emphasis supplied) 10. The aforesaid decision of the Tribunal was accepted by the Department. The subsequent decision of the Tribunal rendered on September 02, 2020 followed the earlier decision. 11. It also needs to be noted that the same view has been taken by the Tribunal in the following cases: (i) M/s. Gujarmal Modi Hospital Research Centre for Medical Science Versus CST, Delhi-II [ 2019(1) TMI 378-CESTAT NEW DELHI] (ii) M/s. Fortis Healthcare (India) Limited versus CCE ST Chandigarh- I [ 2019 (9) TMI 462-CESTAT CHANDIGARH] (iii) M/s. Ivy Health Life Science Pvt. Ltd. Versus CCE, Chandigarh-II/Ludhiana [ 2019 (4) TMI 178- CESTAT CHANDIGARH] (iv) CCE ST, Panchkula, Delhi-IV versus Alchemist Hospital Limited, Artemis Medicare Services Limited [ 2019 (3) TMI 1331-CESTAT CHANDIGARH] 12. Thus, in view of the aforesaid decisions of the Tribunal, it has to be held that the Commissioner was not justified in confirming the demand of service tax under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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