Order Date – 12 April 2023

Parties: Dr Sanjiv Arunchandra Vasa Vs CST-Service Tax - Ahmedabad

Facts –

• The Appellant, Dr Sanjiv Arunchandra Vasa is a medical practitioner doing 'Hair Transplantation' work and was registered during the period under consideration as a Service Provider under the Category - 'COSMETIC AND PLASTIC SURGERY SERVICES' from 1-9-2009. The appellant has regularly been filing the Service Tax Return in Form No. ST-3 and paying the service tax from 1-9-2009 but 'Under Protest'.
• The appellant Vide letter dated 25.04.2011 contended that their services “Hair Transplantation” were not taxable and requested to refund the service tax already paid by them. A show cause notice dated 12.10.2011 was issued to the appellant to show cause the same.
• After due process of law, adjudication order dated 15.05.2012 was passed confirming the tax liability.

Issue –

• Whether the “Hair Transplantation” is taxable or not?

Order –

• The Tribunal observed that the Hair Transplant is neither undertaken to restore or reconstruct anatomy or its functions, nor the procedure of hair transplant restores developmental abnormalities degenerative diseases, injury or trauma. The Tribunal found that hair transplant is a medical procedure to improve outer look of the body for time being and it does in any way contributes to the anatomy or functions of human body.
• It is also normally seen that the Hospitals who undertake procedure of Hair Transplantation advertise/ display their activity not as a disease to be cured but they claim that the procedure taken by them enhances physical appearance.
• Hence it was held that the Hair Transplant is a cosmetic surgery and liable to the service tax levy. The appeal is dismissed.