CLEARMEDI HEALTHCARE PVT LTD vs DELHI SOUTH - 2026 Supreme(Online)(CESTAT) 1882

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2026 Supreme(Online)(CESTAT) 1882

CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL
NEW DELHI
PRINCIPAL BENCH-COURT NO. 3

SERVICE TAX APPEAL NO. 51235 OF 2019

[Arising out of Order in Original No. 39/COMMR/RK/Audit II/2018-19 dated 28.12.2018 passed by the Commissioner, Central Goods & Service Tax, Audit II]

M/S CLEARMEDI HEALTHCARE PVT LTD …..APPELLANT
2nd Floor, 107, Sector 44, Gurugram,
Haryana-122003
Vs.
COMMISSIONER OF CGST & CENTRAL EXCISE-DELHI SOUTH …..RESPONDENT
2nd and 3rd Floor, EIL Annexe Building
Plot No.2B, Bhikaji Cama Place, R K Puram,
New Delhi-110066

Appearance:
Shri B.L.Narasimhan, Shri Shivam Bansal and Ms. Aarushi Prabhakar, Advocates for the Appellant
Shri S.K. Meena, Authorised Representative for the Respondent

CORAM:
HON'BLE MR. ASHOK JINDAL, MEMBER (JUDICIAL)
HON'BLE MR. K. ANPAZHAKAN, MEMBER ( TECHNICAL )

FINAL ORDER NO. 50896 /2026
DATE OF HEARING/DECISION: 06/05/2026

ASHOK JINDAL

1. M/s Clearmedi Healthcare Pvt. Ltd., (‘Appellant’), in the instant case, is engaged in providing equipment / machinery, for diagnosis and treatment by entering into agreements with various hospitals and medical institutions. During the period in dispute, the Appellant entered into the following kinds of arrangements:

Type A: The Appellant undertakes the activity of installing medical equipment such as Linear Accelerator, IMRT equipment, PET CT equipment, Oncology equipment etc. (hereinafter referred to as ‘medical equipment’) in the premises of various hospitals (hereinafter referred to as ‘Hospital’/‘Hospitals’) for the purposes of diagnosis and treatment of cancer patients jointly. The revenue earned by way of diagnosis / treatment of the cancer patients through medical equipment is shared between the Appellant and the Hospitals, as per the agreed pre-determined ratio. Further, the Appellant bears the entire procurement, maintenance & installation cost and the Hospital obtains and maintains valid necessary licenses, permits and authorization required from Government / other regulatory bodies for operation of the said medical equipment. Copy of the Agreement dated 2.10.2022 entered between the Appellant and Kailash Cancer Hospital & Research Centre is enclosed (on an illustrative basis).

● Type B: The Appellant is engaged in the establishment and operation of an Imaging Centre for CT scan, MRI scan, ultrasound, digital x-ray and mammography services etc. in the campus of Jamia Hamdard, in accordance with the agreement entered with the latter. The cost and expenses incurred in the establishment and operation of the Imaging Centre is borne entirely by the Appellant, whereas Jamia Hamdard is providing space to the Appellant for establishment / running of the Imaging Centre in its campus. Copy of the Agreement entered between the Appellant and Jamia Hamdard is enclosed as Annexure-4 of the Appeal.

2. It is pertinent to mention that under both types of arrangements mentioned above, the Appellant receives a percentage of the revenue generated from treating patients. Relevant clauses of both the arrangements entered by the Appellant with both Hospitals / Jamia Hamdard are as below:

Type A: Arrangement entered with Hospitals for installation of medical equipment

Clauses	Description	Details
B-D	Preamble	The Hospital wishes to operate and run a ‘Linear Accelerator’ facility in the building to be owned and constructed by the Hospital (i.e., the ‘Centre’). In pursuance of the above, the Hospital has approached the Appellant to install and maintain the medical equipment required to operate and run the Centre and provide ‘Linear Accelerator’ services. Furthermore, the Centre will function as a “Jointly Controlled Operation”.
2.1	Installation and Ownership	Appellant undertakes to purchase and install the medical equipment at the hospital and all costs & expenses relating to procurement & installation were to be borne by the Appellant.
2.6		The medical equipment shall remain the property of the Appellant and all rights, interest and title in the said equipment shall solely belong to the Appellant.
2.8		A high-level summary of the main contributions to be undertaken by the contracting parties (i.e., the Hospital and the Appellant), with respect to the Project, set out in Schedule 6.
3.1	Scope of agreement	The medical equipment (i.e., the linear accelerator) is provided solely for the purposes of diagnosis and treatment of cancer patients at the Centre.
4.1(a)	Operation of equipment	The Hospital shall ensure that the Linear Accelerator is operated and run at all times by its employees, agents, designees and representatives in accordance with the instructions of the Appellant and the applicable law.
4.1(b)		The Hospital shall provide the Linear Accelerator services to the patients at the rates specified in Schedule 2. Any changes or modifications to the rates specified in Schedule 2 shall be mutually agreed by the P

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