https://www.taxtmi.com/caselaws?id=445723 The CESTAT NEW DELHI held that payments made to USFDA as fees for obtaining pharmaceutical approval do not attract service tax under reverse charge mechanism. The Tribunal relied on precedent from Vidhi Dyestuff case and CBEC Circular No. 89/7/2006-ST, which clarifies that fees paid to statutory authorities for regulatory activities fall outside taxable services. The Tribunal found no legal basis for distinguishing between domestic and foreign statutory authorities, noting USFDA's role as counterpart to India's Drugs Controller General. Since the appeal succeeded on merits, issues of limitation and penalty were not examined. Appeal allowed. en-us Wed, 15 Nov 2023 00:00:00 +0530 Fri, 17 Nov 2023 11:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=445723 The CESTAT NEW DELHI held that payments made to USFDA as fees for obtaining pharmaceutical approval do not attract service tax under reverse charge mechanism. The Tribunal relied on precedent from Vidhi Dyestuff case and CBEC Circular No. 89/7/2006-ST, which clarifies that fees paid to statutory authorities for regulatory activities fall outside taxable services. The Tribunal found no legal basis for distinguishing between domestic and foreign statutory authorities, noting USFDA's role as counterpart to India's Drugs Controller General. Since the appeal succeeded on merits, issues of limitation and penalty were not examined. Appeal allowed. Case-Laws Service Tax Wed, 15 Nov 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=445723