Association of Diplomate of National Board Doctors & Anr. Vs National Medical Commission & Ors. (Delhi High Court)
Introduction: The Delhi High Court, in the case of Association of Diplomate of National Board Doctors & Anr. Vs National Medical Commission & Ors., addressed the contentious issue of Goods and Services Tax (GST) erroneously levied on course fees by the National Board of Examinations (NBE). This article provides an in-depth analysis of the court’s judgment and the subsequent directions issued.
Detailed Analysis: The petitioners challenged notifications issued by NBE, asserting that the 18% GST imposed on Diplomate of National Board (DNB) candidates’ course fees was unwarranted. The court, acknowledging the error, directed NBE to refund the collected GST. NBE, in compliance, submitted details of collected funds, indicating that while some GST remained, a significant portion had been disbursed to hospitals.
In light of this, the court ordered the withdrawal of notifications collecting GST on course fees. Additionally, the court provided specific directives for refunding GST based on different scenarios: when the amount is still with NBE, when transferred to hospitals, and when already deposited with GST authorities. The court emphasized expeditious processing of refund applications by GST authorities and prompt refunding by hospitals.
Conclusion: The Delhi High Court’s decision serves as a precedent, ensuring rectification of the erroneous GST collection by NBE. The ordered refund process involves coordination between NBE, hospitals, and GST authorities. Stakeholders must adhere to the specified timelines, safeguarding the interests of candidates who were unjustly charged. This judgment establishes a crucial legal standpoint on GST applicability to educational course fees, emphasizing fair practices and protecting candidates’ rights.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. The petitioners have filed the present petition, inter alia, impugning notifications dated 15.01.2021, 15.02.2021 and 19.08.2021 (hereafter ‘impugned notifications’), issued by Respondent No. 2 (National Board of Examinations – hereafter ‘NBE’), whereby Goods and Services Tax (hereafter ‘GST’) at the rate of 18% was collected from DNB candidates along with the course fees.
2. According to the petitioners, GST was not payable on the course fee and, therefore, collection of GST was erroneous. This Court was informed that there is no dispute that GST is not chargeable on the course fee and that NBE had wrongfully collected GST. The said issue is also clarified by the GST Council.
3. In the aforesaid circumstances, this Court had passed the following order on 19.05.2023:
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1. The petitioner has filed the present petition, impugning the notifications dated 15.01.2021, 15.02.2021 and 19.08.2021, issued by the National Board of Examination (“NBE”), to the extent that the candidates have been directed to deposit the fees as well as Goods and Services Tax with NBE .
2. Paragraph Nos. 3 and 4 of the notification dated 15.01.2021 reads as under:
“3. The annual course fee payable by an NBE trainee is as follows:
