Stemcyte India Therapeutics Pvt. Ltd. Vs Commissioner of Central Excise And Service Tax (Supreme Court of India)
Supreme Court held that stem cell banking services constitutes a healthcare services as defined under the exemption notification dated 20.06.2012 and hence exempted from payment of service tax. Accordingly, appeal allowed and order set aside.
Facts- The present appeals have been preferred by the appellant / assessee challenging the common Final Order dated 02.08.2024 passed by the Customs, Excise and Service Tax Appellate Tribunal [CESTAT].
By the impugned order, the CESTAT held that the services of enrolment, collection, processing, and storage of umbilical cord blood stem cells, provided by the appellant during the period from 01.07.2012 to 16.02.2014, do not fall within the scope of “Healthcare Services”. Consequently, the appellant was held liable to pay service tax on the said services along with interest and penalties.
Conclusion- Advance Ruling No. KAR ADRG 24/2020, the Karnataka Authority for Advance Ruling held that stem cell donor – related services are exempt as healthcare services. Notably, the Ministry of Health and Family Welfare, through an Office Memorandum dated 22.05.2013 clarified in consultation with the National AIDS control Organization that stem cell banking is a part of “health care services” and qualifies for exemption.
