Classification of service— The present appeal has been filed against the Advance Ruling Order passed by Authority of Advance Ruling of Uttarakhand.
The appellant had requested for advance ruling on the following issue—
“Whether “The Centre” of the applicant is eligible to get the benefit of entry No.74 of exemption Notification No. 12/2017-Central Tax (Rate) dated 28.06 2017, classified under SAC Heading 9993”.
The Authority for Advance Ruling, Uttarakhand, after examining the issue, observed that the supply of services provided by the applicant, which is a composite supply, is rightly classifiable under sub-heading No. 9963 11 as 'Room or unit accommodation services provided by Hotels, Inn, Guest House, Club and the like', whereas, the exemption at Entry No. 74 of exemption Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017 is applicable to services falling under the SAC 9993. Therefore, the AAR held that the applicant is not eligible to get the benefit of Entry No. 74 of Exemption Notification No. 12/2017-Central Tax (Rate), dated 28- 6-2017.
Being aggrieved with the said Ruling, the applicant has filed the present appeal before AAAR.
i. The moot issue to be decided is whether “The Centre” of the applicant is eligible to get the benefit of entry No.74 of exemption Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, classified under SAC Heading 9993”.
ii. The applicant in his appeal submitted that the health care services under question fall under entry No.74 of exemption Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 on the grounds that: -
a. The “Aahana Naturopathy Centre' is an independent clinical establishment
b. the applicant has appointed an authorized medical practitioner in their Naturopathy centre.
Held that— All services provided in relation to or in addition to accommodation service are liable to GST applicable to 'Accommodation Service' in as much as, all such ancillary/additional activities having a proximal nexus with accommodation service.
The Ruling passed by the Authority of Advance Ruling of Uttarakhand is hereby upheld