TaxTMI 
TaxTMI 
2006 (8) TMI 22
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....incipal is covered by Agreement. The basic terms are that the collection centres would have facilities and trained employees for drawal of blood samples, will carry out the essential processing (serum separation) of blood and forward the samples to the principals through couriers. The collection centres are also responsible for the disposal of waste arising in the process. The test charges are collected by these Centres at the rates stipulated by the test laboratories. The collection centres are paid a percentage (25% etc.) for the service rendered by them. 2. Under the impugned orders, it has been found that the services rendered by these collection centres are "Business Auxiliary Services" which attract service tax. Tax demands r....
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....vices, and includes services as a commission agent, but does not include any information technology service. 5. The contention of the learned counsel is that testing starts with drawal of sample and thus, forms an essential and integral part of testing. It is being submitted that since definition of "technical testing and analysis" under clause (106) "does not include testing or analysis in relation to human beings or animal", the testing service rendered by the appellant is excluded from service tax. Learned counsel for Ludhiana Collection Centre for Dr. Lal Path Labs Pvt Ltd. has pointed out that the Commissioner has noted in the impugned order that what the appellant does "may also be essential part of testing and analysis procedure c....
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....; but also "any service in relation to" those services in view of the definition. It is being contended that services that are ancillary or auxiliary or connected to the specified services (technical testing and analysis) would also fall within the scope of the specified services in view of the broad sweep of the language used in the definition. The submission of the learned counsel is that as there could be no dispute that drawing of blood sample is an essential step for testing the sample, it has to treated as, auxiliary and integrally connected to testing and analysis service, (even if not treated as forming part) and thus, a service "in relation of testing". The contention is that since the definition covers "any service in relation to ....
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....t that sub-clause (iv) in the definition of 'business auxiliary service' specifically includes any Incidental or auxiliary support service'. The point emphasised is that since the appellants perform many services incidental to the testing and analysis service such as collecting samples, billing, supplying test reports, they clearly come within the scope of levy as "any incidental or ancillary support service". 10. With regard to the contention of the appellant that all services 'in relation to' technical testing and analysis service are also excluded from the service tax, the contention of the learned SDR is that the service should from part of technical testing and service to be in relation to that service. It is his....
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....ervice". Thus, drawing of samples will come within the scope of the definition. The dispute as to whether drawing of sample forms part of testing and analysis service is not relevant in view of the sweeping nature of the definition. If the service is 'in relation to testing, the service will get classified under technical testing and analysis. It is inconceivable that 'relationship' of sample drawing and initial processing to testing can be denied. The relationship may be incidental or auxiliary. Whichever way it is, its connection to testing and analysis service is clear, integral and undeniable. Thus, in the factual situation of the case, and the broad scope of the definition, definitely bring the services renders by the colle....
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....or animal at a different rate than other technical test and analysis service, the legislature would have separately specified the levy. In the present case, clearly the intention of the legislature is not to impose any levy at all on testing or analysis of human beings or animals. therefore, the contention of the learned SDR to the contrary is not a legally correct view. 14. The services rendered by the appellants herein also do not seem to fall under any category specified in the definition of 'business auxiliary service'. The agreements make it clear that the appellants arc not engaged for promotion or marketing of testing and analysis service. The appellants' business is organised for drawal of samples and for processing a....