The Madras High court directed the Medical College Hospital to approach the Government demanding Goods and Service Tax (GST) exemption for hospital or medical services.
The petitioner, Sree Balaji Medical College & Hospital has sought the declaration that the professional services rendered by the Doctors of petitioner’s Medical College Hospital under the nature of diagnostic services on X-Ray Films, CT Scan Films, MRI Films and supply of medical gases and implants are during the course of treatment to patients would not amount to transfer of property in goods or an incident of contract of service under the scope of “works contract” as per Article 366 (29A) (b) of the Constitution of India and under Section 2(33) of the TNVAT Act, 2006.
Mr.Manoharan Sundaram, counsel appearing on behalf of the Writ Petitioners made a submission that the issues raised in all these Writ Petitions were already adjudicated by this Court in a batch of Writ Petitions and a judgment was pronounced on 28.05.2020 in W.P.Nos.2982 to 2987 of 2012, etc which were filed to call for the impugned proceedings of the 3rd respondent dated 27.04.2012 and quash the same and consequently restraining the 3rd Respondent herein from levying and collecting taxes on rendering diagnostic services on X-Ray films, CT films, MRI films and medical gases for inpatient treatments and other allied medical services to the patients at the petitioner Medical College Hospital
The division bench of Justice S.M.Subramaniam while following its earlier decision directed the petitioner to approach the Government independently and request the Government for a suitable retrospective relaxation by way of exemption for hospital/medical services rendered by them in the light of the fact that the same activity/transaction appears to have been exempted under the GST Regime from July 2017.
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