Commissioner of Service Tax Vs Medicare Service (India) Pvt Ltd (Calcutta High Court)
Calcutta High Court has dismissed an appeal filed by the Commissioner of Service Tax against Medicare Service (India) Pvt Ltd, ruling that the matter concerning service classification under ‘Insurance Auxiliary Service’ was not maintainable before it. The court’s decision, delivered on July 30, 2024, in final order no. 76459 of 2024, upheld an earlier order by the Customs, Central Excise & Service Tax Appellate Tribunal (CESTAT), East Zonal Bench, Kolkata.
The appeal, brought by the department under Section 35G of the Central Excise Act, 1944, read with Section 83 of the Finance Act, 1994, centered on allegations of unpaid service tax and improper Cenvat Credit claims by Medicare Service (India) Pvt Ltd. Mr. J. P. Khaitan, senior counsel, represented the appellant, while Mr. B. P. Banerjee appeared for the respondent.
Background of the Dispute
The revenue’s case against Medicare Service (India) Pvt Ltd stemmed from several contentions regarding the nature of services provided and the company’s compliance with service tax regulations. The department asserted that Medicare Service (India) Pvt Ltd had registered itself as an ‘Insurance Auxiliary Service’ provider on May 3, 2002. Despite this registration, the revenue alleged that the company was providing services through an entity identified as “M/s Medicare Service Club,” which reportedly lacked registration from the Service Tax Authority.
