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TMI Blog2016 (11) TMI 238X X X X Extracts X X X X X X X X Extracts X X X X ..... er and the Government/STAR. In fact that should have been the first endeavour of the adjudicating authority, since the petitioner raised a preliminary objection by stating that KKT is a Welfare Scheme and not an Insurance policy, no approval was obtained from IRDA and therefore, they will not fall within the definition of "Health Check up and Treatment Services" Unless and until the Scheme has been examined in full, the respondent cannot come to a conclusion that the nature of transaction done by the petitioner would fall within the definition of section 65(105)(zzzzo) of the Finance Act - the Scheme propounded by the Government arrangement with STAR, the petitioner and the Government, conclusion could not have been arrived at and the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner, this Court is inclined to entertain the Writ Petition. 4. The petitioner is a Hospital specialized in Orthopaedic and Trauma care. The Government of Tamil Nadu vide G.O.Ms.No.49 dated 04.02.2009, framed a Scheme Kalaignar Kaapittu Thittam (KKT), with a view to afford good medical treatment for the people in the lower income group, who were suffering from serious ailments, by providing treatment in Government as well as in private notified Hospitals. The Operative Guidelines of the Scheme was provided by a State Empowered Committee with the Chief Secretary as its Chairman and Heads of various Government Departments as its Members. The State Health Society was designated as the Implementing Agency of the Scheme. The Scheme was to be m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... but a Welfare Scheme. The term Insurance used in the Welfare Scheme is a misnomer and thus would not fall under the definition of the term Insurance . The Welfare Scheme has not been approved by the Insurance Regulation and Development Authority of India (IRDA) and therefore, this is not an Insurance Policy in the eye of law; that KKT is not an Insurance Policy, but only a Welfare Scheme and thus ought not to have been taxed under section 65(105)(zzzzo) of the Finance Act, 1994; that the Hospitals are service providers and the patients are service receivers; STAR is not service receiver, but, only administrator of the scheme, appointed by the Government of Tamilnadu on its behalf and there is no insurance policy or policy holder at all in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e by referring to the statutory provisions and in particular section 67(1) of the Finance Act; Rule 5(2) of the Service Tax (Determination of Values) Rules, 2006, perused the copies of the sample bills of the petitioner and came to the conclusion that the dominant purpose of medical services and integral to such a service is a medical procedure that involves administering medicines and drugs and may involve, implants, stents, etc. The supply of these articles were integral to and essential for the treatment offered to patients and even if one may categorize these as incidental to the actual medical procedure, one cannot ignore that the medical procedure cannot be completed without supply of medicines, drugs, stents, implants, etc. 9. Aft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is no policy drawn between the beneficiary and STAR or the petitioner. Therefore, unless and until the Scheme has been examined in full, the respondent cannot come to a conclusion that the nature of transaction done by the petitioner would fall within the definition of section 65(105)(zzzzo) of the Finance Act. Therefore, this Court is of the view that such an exercise is required to be done before coming to the conclusion as to what is the nature of service rendered and whether it is an Insurance Policy or it is a Welfare Scheme. Thus, without examining the Government orders, the Scheme propounded by the Government arrangement with STAR, the petitioner and the Government, conclusion could not have been arrived at and the case laws referre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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