Interpreting and challenging the adjudication order
| Facts | Our client is a Private Limited Company engaged in running a dental clinic. Service tax demand was raised on the ground that the company did not render medical services but merely hired doctors and paid their salaries. The impugned order stated – “From the copies of appointment letter of doctors issued by the Noticee and countersigned by the Doctors, I find that the role of the Noticee is limited to that of recruiting the doctors / clinicians. The Noticee is entering into a consulting contract with these doctors / clinicians for providing services at the place / centers of clinic in return of the professional charges which will be paid by the Noticee. This is evident from the invoices raised by the doctors towards professional charges and billed to the Noticee and also the bank statements showing proof of payments made to the said doctors by the Noticee” |
| Our argument | In the appellate proceedings, we argued that -The adjudicating authority has not disputed that the appellant has provided the following services – a) Appointed the doctors, b) Asking the said doctors to provide services at Metropolitan laboratories premises, c) Paid the professional fees to the doctors as evidenced by the bills raised by the doctors and bank statements.When the fact that the above activities were executed by the appellant is accepted, it cannot be said that the appellant did not provide medical services. |
| Result | In the result, the appellate authority accepted our argument and set aside the adjudication order. |