2009 (11) TMI 213

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....hnical testing and analysis along with interest and penalties under Section 76 & 78 of the Finance Act, 1994. 2. The facts of the case in brief are that the respondents are engaged in the business of conducting clinical trial for their clients in India and outside India and providing service under the category of "Technical Testing and Analysis" as defined under Section 65(106 of the Finance Act, 1994) read with sub Clause ZZH of Clause 105 of Section 65 of the Act. On scrutiny of ST-3 return filed by the respondents, it was observed that the respondents had not paid service tax on the amount of 4,04,12,925/- received by them against the export service. The service tax liability was worked out, statements were recorded and it was observe....

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....e of the courier outside India and their service is not qualified by the exemption under Notification No. 11/2007-ST dated 01.3.2007. Accordingly, he prayed that the impugned order be set aside heard. 7. After hearing at length we find that the appeal can be disposed off at this stage as the issue involved in this case of narrow compass and after rejecting the stay petition we take up the appeal for hearing. 8. We have considered the submissions made by the learned Dr. 9. The issue before us is whether the service conducting clinical trials provided by the respondents are taxable service under the category of technical testing and analysis as defined under the Act. In the instant case the respondent has shown as the service provide....

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....when such reports were delivered to the clients outside India, it amounts to taxable service partly performed outside India. The performance of the taxable service has no validity/sanctity unless its report is submitted to the service receiver/client. The clients do not have any value for merely performance if no report is delivered to them. Consideration of the service is received by the appellants only when they deliver the study report and the certificate of the testing and analysis of the clinical trials conducted by them. Thus, delivery of the report is an essential part of their service and the service is not complete till they deliver the report. The report is delivered outside India and the same is used outside India. These facts al....