Ayurvedic Centres run by Resorts out of Service Tax Net: CESTAT [Read Order]

Ayurvedic Centres - Service Tax - Taxscan

The Bangalore bench of the Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ) has ruled that no service tax can be levied on the treatment given by the ayurvedic centres run by the resorts.

The respondents are engaged in running resorts and they are operating ayurvedic treatment centres at the respective resorts. They have licenses issued by the Department to operate the said ayurvedic centre as private hospital establishment; they operate the ayurvedic centre with full time qualified ayurvedic doctors and qualified staff for giving the treatment. The department held that the respondents are providing taxable services under the head “health club and fitness centre.”

The first appellate authority held that the ayurvedic centres are providing therapeutic treatment under ayurvedic system.

Before the Tribunal, it was contended on behalf of the department that these resorts are only for pleasure and holidaying and massages are optional and invariably are of general well-being than treatment of a particular disease.

The bench, after perusing the records maintained by these ayurvedic centres, noted that they are maintaining case sheets/treatment files and the treatment process schedule which is a normally done by hospitals also.

“By the mere fact that the ayurvedic centres are located in the premises of the resorts, it cannot be said that they cease to be ayurvedic centres coming to ayurvedic treatment per se,” the bench said.

The bench further accepted the contention of the respondents that these processes/ treatments are emanating from the ayurvedic texts like Astangahrudaya, Sahasrayoga, Charakasamhitha, Susruthasamhitha, etc. Supervision of such treatments are being given by or given under the guidance of professional ayurvedic doctors.

“Such ayurvedic centres are licensed to function as ayurvedic centres by the respective authorities. Therefore, we find that all the required conditions for such treatments to be treated as therapeutic are specified and will fall under the exclusion provided by the Board Circular,” the bench added.

Subscribe Taxscan Premium to view the Judgment
taxscan-loader