Case Law Details
In re West Bengal Medical Services Corporation Ltd (AAR West Bengal)
The Applicant has been set up under Notification No. HF/SPSRC/WBMSC/40/2008/162 dated 17/11/2008 of the Department of Health & Family Welfare, Government of West Bengal, as a fully owned body for managing the procurement of drugs and equipment for the medical colleges and hospitals and construction and maintenance of health facilities.
SI No. 23 of the Eleventh Schedule of the Constitution specifies the functions of health and sanitation, including hospitals, primary health centers and dispensaries. Since the Eleventh Schedule is built in Art 243G of the Constitution, scope of its entries should be examined with reference to the powers entrusted to a Panchayat under the West Bengal Panchayat Act, 1973 (hereinafter the 1973 Act). Section 153(1)(a) of the 1973 Act empowers the Zilla Parishad [Art 243(d) of the Constitution defines a Panchayat as an institution of self-government constituted under Art 243B. Such a Panchayat, according to section 2(15b) of the 1973 Act, includes a Zilla Parishad] to undertake schemes and adopt measures for public health and sanitation, including establishment and maintenance of dispensaries and hospitals. In other words, the scope of the function under SI No. 23 of the Eleventh Schedule of the Constitution includes inter alia all activities in relation to establishment and maintenance of hospitals and dispensaries.
Managing procurement of drugs and equipment for the medical colleges and hospitals and construction and maintenance of health facilities is an activity in relation to establishment and maintenance of hospitals and dispensaries. The Applicant, therefore, is a body established by a State Government Notification, with 100 per cent participation by way of equity and control, to carry out a function entrusted to a Panchayat under SI No. 23 of the Eleventh Schedule under Article 243 G of the Constitution. It is, therefore, a Governmental Authority as defined under para 2(zf) of the Exemption Notification.
The Applicant has not provided any invoice or work order. The description of the activity for which the Applicant raises tax invoice is, therefore, not ascertained. However, the Applicant is eligible for exemption under SI No. 5 of the Exemption Notification on supply of any service, including composite supplies like works contract service whatever be the proportion of goods, in relation to establishment and maintenance of hospitals and similar health facilities.
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