Commissioner General of Inland Revenue vs Herbal Holiday Resorts (Private) Limited – SC/APPEAL/6/2022-2024

In the case between Herbal Holiday Resorts (Private) Limited and the Commissioner General of Inland Revenue, Department of Inland Revenue, the court addressed the issue of whether Herbal Holiday Resorts qualified as a “medical institution” for the purpose of VAT exemption under the Value Added Tax Act, given the absence of registration with the Department of Ayurveda at the relevant time. The court held that registration with the Department of Ayurveda is mandatory and serves as the best evidence of a medical institution’s status, leading to the denial of the claimed exemption. The decision reaffirmed the principle that statutory exemptions, especially those relating to revenue, must be strictly construed, and any ambiguity should be resolved in favor of the revenue. Reference was made to