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TMI Blog2018 (7) TMI 1387X X X X Extracts X X X X X X X X Extracts X X X X ..... retained by the hospital under ‘Business Support Services’. Even for the period w.e.f. 01.07.2012, the Tribunal has held that there is no justification for levy of service tax - Demand with interest and penalties set aside. Regarding the service tax liability under the category of ‘Renting of Immovable Property’, the same have been admitted by the appellant and has also been paid alongwith interest prior to issue of show cause notice. Appeal allowed - decided in favor of appellant. - S.T. Appeal No. 53377 & 53615 of 2015 - ST/A/52397 - 52398/2018-CU[DB] - Dated:- 27-6-2018 - Mr. V. Padmanabhan, Member (Technical) And Mr. Ajay Sharma, Member (Judicial) Sh. B. L. Narasimhan Ms. Shagun Arora, Advocates for the assessee S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , are liable to pay service tax under the category of Business Support Services . He also imposed various penalties on the appellants. However, the Adjudicating Authority restricted such demand of service tax to that falling within the normal period of limitation. The order for payment of service tax have been challenged by the Hospital. 2. The Revenue has also filed the appeal against the same Order-in-Original. Main ground of challenge is that the Adjudicating Authority should have ordered payment of service tax for the entire period of demand, instead of restricting it to normal time limit. The other ground on which the Revenue has filed appeal is with reference to the small demand under heading Renting of Immovable Property . Even ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erusal of record, we note that the identical issue has been considered by the Tribunal and decided in favour of the appellants in the case of Sir Ganga Ram Hospital Others (supra). The Tribunal has observed as follows:- 5. The claim of the Revenue is that the appellants have provided infrastructural support service to various doctors. As a consideration for such support, they have retained a part of the amount collected from visiting patients. We have perused some of the agreements/appointment arrangements entered into between the appellants hospitals and the individual doctors. Typically, the arrangement contains details like duration of time for consultation, the obligations on the part of the doctors, fee to be paid, procedure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Here, it is very relevant to note that the appellant hospitals are engaged in providing health care services. This can be done by appointing 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 s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch proposition. Doctors are engaged in medical profession. As examined by Hon ble Gujarat High Court in Dr KK Shah (supra), though in an income-tax case, we note that there is a discernable difference between business and profession . The Gujarat High Court referred to decision of Hon ble Supreme Court in Dr Devender Surtis AIR 1962 SC 63. The Supreme Court observed as below: There is a fundamental distinction between a professional activity and an activity of a commercial character : a profession involves the idea of an occupation requiring either purely intellectual skill, or of manual skill controlled, as in painting and sculpture, of surgery, by the intellectual skill of the operator, as distinguished from an occupation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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. 10. The terms health care services is defined as below: health care services means any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognized system of medicines in India and includes services by way of transportation of the patient to and from a clinical establishment but does not include their transplant or cosmetic or plastic s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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