2014 (1) TMI 258

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....ncies - M/s Baker Perkins, England and M/s Eclipse Scientific Group for carrying out general extrusion trials at Baker Perkins Innovation Centre, Peterborough, for analysis of data and samples. For the service rendered by the English company, the appellant remitted the stated amount. Revenue proceeded against the appellant to recover service tax, interest and penalty on the premise that the appellant was the recipient of "scientific or technical consultancy" service defined in Section 65 (92) and specified to be a taxable service in Section 65 (105)(za) of the Finance Act, 1994. 2. In response to the show cause notice, the appellant contested the classification and contended that the service provided by the English company is more approp....

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....ambivalent analysis in the adjudication order, it requires to be noticed that on true and fair analysis of the transaction in issue and that the service is performed at an overseas location, the service therefore falls more appropriately within the ambit of technical testing and analysis service under Section 65(106) of the Act and not within "scientific or technical consultancy", defined in Section 65(92) of the Act. Admittedly, the taxable service of technical testing and analysis was provided by the overseas company outside the Indian territory. This factual circumstance brings the transaction, squarely within the ambit of Rule 3(ii) of the 2006 Rules and is therefore beyond the purview of the provisions of the Act. 5. The adjudicatin....

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....al testing and analysis, in contradistinction, is defined to mean any service in relation to physical, chemical, biological or any other scientific testing or analysis of goods or material or any immovable property, but does not include any testing or analysis service provided in relation to human beings or animals. The Explanation to Section 65(106) clarifies that the expression "technical testing and analysis" includes technical testing and analysis undertaken for the purpose of clinical testing of drugs and formulations. Clinical testing of drugs and formulations is therefore included within the scope of technical testing and analysis by an express inclusionary clause set out in the Explanation to the provision. 8. The ambit of "scien....