Supply of medicines, drugs, stents, and other implants etc., during the course of treatment or a medical procedure is not a ‘Sale’ and thus not exigible to VAT

Last updated: 13 April 2015

Court :
Hon’ble High Court, Punjab and Haryana

Brief :
The Hon’ble High Court of Punjab and Haryana made elaborate discussion in this regard and held as under: - The State Governments draws their power to impose Sales Tax/ VAT on sale or purchase of goods, other than newspapers, from Entry No.54 of List II of Schedule VII of the Constitution of India (“the Constitution”) and the element of sale in composite contracts is exigible to Sales Tax/VAT by virtue of Article 366(29A) of the Constitution. The power of the Union to tax, can be traced to Entry No.97 of List I or Entry 92-C of List I of Schedule VII of the Constitution. A State may impose tax on ‘sale of goods’ but is not empowered to impose tax on services;

Citation :
Fortis Health Care Ltd And Another Vs. State Of Punjab And Others [2015-TIOL-466-HC-P&H-VAT]