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of <h1>Clinical trial services to foreign clients held as export of service under Finance Act, 1994. Appellants win tax case.</h1> <h3>CST Ahmedabad Versus M/s Synchron Research Services Pvt. Ltd.</h3> CST Ahmedabad Versus M/s Synchron Research Services Pvt. Ltd. - TMI Issues Involved:- Whether services provided by the appellants for conducting clinical trials to foreign clients can be considered as export of service under the relevant provisions of the Finance Act, 1994.Detailed Analysis:Issue 1: Services as Export of Service- The appellants conducted clinical trials for clients in India and outside, falling under Technical Testing and Analysis services as per the Finance Act, 1994.- A Show Cause Notice was issued as Service Tax was not paid on the amount received against export of service to clients outside India.- The adjudicating authority confirmed the demand, imposed interest, and penalty under relevant sections of the Act.- The first appellate authority, after waiving the pre-deposit condition, set aside the Order-in-Original, holding it incorrect, and allowed the appeal.- The Revenue appealed, arguing that an identical issue was decided in a previous case by the same Bench.- The Bench referred to the previous judgment and analyzed the issue of whether conducting clinical trials constituted taxable service under technical testing and analysis.- The Bench examined the Export of Services Rules, 2005, determining that the service performance was not complete until the testing and analysis report was delivered to the client outside India.- Delivery of the report outside India and its use there satisfied the conditions for export of service, making the service not taxable.- The Bench upheld the impugned order, rejecting the Revenue's appeal and disposing of the Stay petition accordingly.- The judgment concluded that the issue was settled in favor of the assessee based on the analysis of the service delivery and usage outside India.- The impugned order was deemed correct and without any infirmity, leading to the rejection of the Revenue's appeal.This detailed analysis of the judgment highlights the key legal arguments, interpretations of relevant provisions, and the final decision regarding the taxability of services provided by the appellants for conducting clinical trials to foreign clients.
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