Bankers Cardiogy Private Limited & Anr. Vs Commissioner of Commercial Tax & Anr (Gujarat High Court)
Gujarat High Court held that petition for levy of VAT on supply of medicines, stents, implants, consumables etc. during the course of treatment of patients is dismissed. Accordingly, levy of VAT on such supply sustained.
Facts- The petitioners are hospitals engaged in the activity of treatment of as indoor patients. In order to treat the patients, the petitioner hospitals use medicines, implants, stents, consumables, etc.
In these petitions, by impugned show cause notices/orders, the respondents have imposed value added tax under the VAT Act on supply of such medicines, implants, stents, consumables, etc. used for treatment of indoor patients considering them as “sale of goods”.
By this group of petitions, the petitioners have challenged the vires of provision of clause (g) of section 2(23) of the Gujarat Value Added Tax Act, 2003 as being ultra vires the legislative competence of the State Legislature and further have prayed to quash and set aside the assessment orders and/or show cause notices for the relevant period declaring that supply of medicines, stents, implants, consumables etc. during the course of treatment of patients does not amount to ‘sale’ as defined in section 2(23) of the VAT Act.
