Association Of Diplomate Of National Board Doctors & Anr. vs. National Medical Commission & Ors.

Held

The Court held that the petitioners' contention that the impugned notifications are liable to be set aside, to the extent they seek to collect GST on course fees, is merited. The NBE, represented by its counsel, stated that the impugned notifications would be withdrawn by issuing a public notice. Consequently, no further orders were required regarding the setting aside of the notifications, except to restrain the NBE from collecting any further GST pursuant to them. The Court issued specific directions for the refund of collected GST. Where GST is available with NBE, it shall be refunded expeditiously. If GST was transferred to hospitals and not deposited with GST authorities, hospitals must refund it to candidates. If GST was deposited with GST authorities, hospitals must apply for a refund. The Court also directed NBE to trace untraceable transactions and refund GST to identified candidates. The concerned GST authorities were requested to process refund applications expeditiously. The NBE was directed to communicate the order to all concerned hospitals.

Facts

The petitioners, Association of Diplomate of National Board Doctors & Anr., filed a writ petition challenging notifications issued by the National Board of Examinations (NBE) on January 15, 2021, February 15, 2021, and August 19, 2021. These notifications directed DNB candidates to pay Goods and Services Tax (GST) at 18% on their course fees. The petitioners contended that GST was not payable on the course fee. The NBE acknowledged that the collection of GST was erroneous. However, the NBE stated that the collected funds, including GST, had largely been disbursed to various hospitals. The Court had previously directed the NBE to file an affidavit detailing candidate information, fee amounts, hospital remittances, and dates of remittance.

Key Issues

1. Whether the impugned notifications issued by the National Board of Examinations (NBE), to the extent they mandate the collection of Goods and Services Tax (GST) on course fees for DNB candidates, are liable to be set aside? (Question of law, concerning the applicability of GST on educational course fees). Petitioner's contention: GST is not payable on the course fee, as confirmed by Respondent No. 3 and clarified by the GST Council. Therefore, the collection of GST by NBE was erroneous and the impugned notifications are liable to be set aside. Revenue/State's contention: Not recorded in the judgment. The NBE, a respondent, acknowledged that its demand for GST on course fees was erroneous and stated that the impugned notifications, to the extent they seek to collect GST on course fees, would be withdrawn by issuing a public notice.