Dependent Agent PE unresolved for lack of factual inquiry; arm's-length distribution accepted; royalty claim rejected; 15% refund interest (Section 24...
Exemption under s.10(23C)(iiiad) upheld; appeal allowed, interest and dividends excluded from annual receipts, disallowance deleted, capital gains exe...
CESTAT held that the appellant's activities-development of APIs and pharmaceutical products, execution of tests and compilation/submission of a dossier-constitute Scientific or Technical Consultancy services rather than OIDAR services; the mode of delivery (electronic upload) was incidental and not the essence of the contract. The place of provision is the recipient's location (foreign affiliate in the USA), hence the services qualify as export of services. Consequentially, the appellant is not liable for service tax on those services and is entitled to refund of Cenvat credit under Rule 5 of the CCR. The impugned orders were set aside and the appeal allowed.
CESTAT held that the appellant's activities-development of APIs and pharmaceutical products, execution of tests and compilation/submission of a dossier-constitute Scientific or Technical Consultancy services rather than OIDAR services; the mode of delivery (electronic upload) was incidental and not the essence of the contract. The place of provision is the recipient's location (foreign affiliate in the USA), hence the services qualify as export of services. Consequentially, the appellant is not liable for service tax on those services and is entitled to refund of Cenvat credit under Rule 5 of the CCR. The impugned orders were set aside and the appeal allowed.
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