2008 (11) TMI 119 - AT - Service Tax

Beauty treatment services does not include hair cutting & shaving or any physical surgery/cosmetic surgery done to improve appearance - therefore, it is held that the laser treatment given by the respondent is near to cosmetic surgery treatment - in view of the factual position that such treatment has to be given either by doctors or under their supervision and guidance, it has to be held that the same is a cosmetic surgical services and not beauty treatment services

Summary

Issues:
1. Whether laser treatment for physical disorders and hair removal qualifies as beauty treatment service under section 65(17) of the Finance Act, 1994.

Analysis:
1. The dispute revolved around determining whether laser treatment for curing physical disorders and hair removal falls under the category of beauty treatment service for the purpose of levying service tax as per section 65(17) of the Finance Act, 1994.

2. The original adjudicating authority classified the services as beauty parlour services, subject to service tax, based on the premise that the treatment aimed at enhancing the beauty and looks of the individuals receiving it.

3. The appellant argued before the Commissioner (Appeals) that the laser treatment provided was for medical purposes, emphasizing the diagnostic procedures, medical supervision, and the therapeutic nature of the treatment. They also cited relevant definitions and medical opinions supporting the view that laser surgery for physical disorders is more akin to medical services than beauty treatment.

4. The Commissioner (Appeals) acknowledged the medical nature of the laser treatment, considering expert opinions and the therapeutic aspect of the procedures. The Commissioner highlighted that even if the treatment improved appearance, it did not attract service tax under the provisions of section 65(17) of the Finance Act, 1994, which exclude cosmetic surgery services from the scope of beauty treatment.

5. The revenue challenged the Commissioner's decision, arguing that laser hair removal should be categorized as beauty treatment based on specific definitions of cosmetic and plastic surgery. The revenue also pointed out the appellant's registration as a beauty parlour and advertisements indicating a beauty parlour service rather than a medical facility.

6. The Appellate Tribunal upheld the Commissioner's decision, emphasizing that the laser treatment provided by the appellant was closer to cosmetic surgery than beauty treatment. The Tribunal considered the necessity of medical supervision and the nature of the procedures, concluding that the services qualified as cosmetic surgical services and not beauty treatment services.

This detailed analysis of the legal judgment showcases the intricacies of the dispute and the reasoning behind the decision regarding the classification of laser treatment for physical disorders and hair removal under the relevant provisions of the Finance Act, 1994.