CESTAT upholds Rs. 2 Cr Service Tax Demand on Stem Cell/Umbilical Cord Blood Bank, says No Retrospective Exemption

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has upheld a service tax demand of Rs. 2 crore against a stem cell umbilical cord blood bank. The tribunal ruled that the service provided by the stem cell bank is not eligible for retrospective exemption under the Service Tax Act. The case revolved around whether the storage of stem cells qualified as "healthcare services" and thus could be exempted from service tax. However, the tribunal decided that the exemption could not be applied retrospectively, and the service tax demand stands. This decision emphasizes the need for clarity in tax exemptions and the importance of adhering to tax laws as they are interpreted by authorities.