STATE OF KERALA Vs. CHAZHIKKATTU HOSPITAL

JUDGEMENT

(1.) All the above revisions are from orders of the Tribunal setting aside the penalty imposed by the Assessing Authority for not having complied with the terms of a notice issued to produce the accounts for verification. The notice issued was also on the premise that hospitals administering medicines and using consumables in the course of treatment are involved in sale of goods; exigible to sales tax. A Full Bench of this court in Sanjose Parish Hospital v. Commercial Tax Officer [2019(1) KLT 336(FB)] has found that the supply of drugs, consumables and implants in the course of medical treatment are not capable of separation from the composite medical services offered and hence not exigible to sales tax, which liability arises only on sale of goods.

(2.) As to the specific ground on which penalty has been imposed; a Division Bench of this Court in ST Rev.No.40 of 2012 dated 28.02.2019, produced as Annexure R - V in ST Rev.No.9 of 2016 held the same to be unsustainable.