Service Tax – Cestat Hyderabad: Melasma, Birth Mark Treatment is not taxable under the cosmetic and plastic surgery and are exempted from tax both before and after 01.07.2012 as it is falling Health Care Services – Appeal allowed [Order attached]
Order Date – 23 December 2022
- The Appellant, M/s Sreyas Holistic Remedies Pvt. Ltd., runs chain of healthcare clinical services under their brand name ‘Oliva Clinics’ in the States – Telangana, Tamil Nadu and Karnataka.
- A show cause notice dated 29.08.2017 was issued invoking the extended period of limitation for the period 01.07.2012 to 31.03.2016 as it appeared that some of the services which the appellant was treating as non-taxable are taxable
- Whether the service provided by the appellant is predominantly for healthcare or predominantly cosmetic in nature?
- The Tribunal held that Services rendered by the appellant assessee in respect of Melasma, Birth Mark Treatment are held falling Health Care Services under clause 2(t) of the notification No. 25/2012 as amended. Hence the said activities are not taxable under the cosmetic and plastic surgery and are exempted from payment of service tax both before and after 01.07.2012;
- Services rendered by the appellant assessee in respect of Hypertrichosis Treatments and Hair Laser Comb Treatment are held taxable under “Cosmetic and Plastic Surgery” service, for which tax is payable for normal period as applicable at the relevant time with interest.
- The Tribunal also held that the extended period of limitation is not invocable as the appellant has regularly deposited their admitted taxes and have also paid tax and filed pending ST-3 returns during the course of investigation. Also the demand has been raised by the Revenue based on the accounts and records maintained by them.