Stemcyte India Therapeutics Pvt. Ltd. Vs Commissioner of Central Excise And Service Tax (Supreme Court of India)
SC order on What is the interpretation of Health care services and grounds for invocation of extended period of limitation
The Ld Judges in this case were dealing with services of enrolment, collection, processing and storage of unbiblical cord blood stem cells and claim by the assessee that they were health care services and thus exempt from service tax. Earlier CESTAT had held that the stem cells were not used for treating regular illness and thus it could not be held to be within the ambit and scope of Healthcare services..
In so far as extended period of limitation is concerned the Ld Judges held that it is settled principle of law that there must be an active and deliberate act on part of the assessee to evade payment of tax. Mere non payment of tax without any suppression, any element of intent is not sufficient to invoke extended period of limitation. The show cause notice was thus held to be time barred.
The appellant acted under a bona fide belief that their activities were covered under Entry 2 of the Exemption Notification dated 20.06.2012. The records substantiate that the appellant had addressed multiple representations – dated 24.07.2012, 21.09.2012, 27.02.2013, 08.03.2013 and 20.03.2013 to the Ministry, seeking clarifications on the applicability of the exemption. Their consistent engagement with the authorities further reinforces their bona fide conduct.
