2019 (2) TMI 88 – CESTAT CHENNAI – TMI – Rectification of Mistake application – the said plea of the appellant being that the hospital is a charitable institution, the said observation made by the Tribunal is apparently an error – Held that:- There are no doubt with regard to the conclusion made by the Tribunal. If hospital charges fee for treatment, the same would make the building being used for commercial purpose. In cases where mere registration fees are collected and treatment is completely free, they would come within the ambit of non-commercial entity. However, this depends upon facts of each case and the Tribunal after examining the facts of the case has made such observation and directed for re-examination of these facts on this i
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on of hospital building which is run by a charitable institution would not come within the levy of service tax being a non-commercial entity. In para 6.1 of the impugned order, though the Tribunal discussed this issue, it observed that the hospital charging a fee for treatment by different amount makes it a commercial establishment to make the building a commercial building. That the said plea of the appellant being that the hospital is a charitable institution, the said observation made by the Tribunal is apparently an error. He submitted that based on this observation, the Tribunal limited the demand to the normal period which is erroneous. It is also argued that though the service tax in respect of cleaning services rendered by the appel
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ontended by the ld. counsel that the Tribunal instead of observing and following the decision that mere charging by a hospital would not make it building for commercial purpose has erroneously noted that if fee is charged for treatment, the same would make the building constructed to be for commercial purpose. After perusing the said observation of the Tribunal in para 6.1, we do not find any doubt with regard to the conclusion made by the Tribunal. If hospital charges fee for treatment, the same would make the building being used for commercial purpose. In cases where mere registration fees are collected and treatment is completely free, they would come within the ambit of non-commercial entity. However, this depends upon facts of each cas
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