Clinical establishments providing health care services not liable to pay service tax: CESTAT

Through a recent order, the Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has stated that clinical establishments that provide healthcare services are exempted from paying service tax.

The CESTAT bench expressed this opinion while setting aside an order of the Commissioner of Service Tax, Delhi III, which had issued show-cause notice to Maharaja Agrasen Hospital Charitable Trust confirming the demand of service tax under “business auxiliary service” and “renting of immovable property service” with penalty and interest.

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Clinical Establishments Providing Health Care Services Not Liable To Pay Service Tax: CESTAT