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TaxTMI 
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TaxTMI 
2016 (11) TMI 107
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.... and also to M/s UCL Business, London and declared such services as falling under Scientific and Technical Consultancy (STC) service. Show cause notice was issued to the appellants sought to classify their services under 'Technical Testing and Analysis' (TTA) service. 1.2 After due process of law, Original authority vide Order dated 23-06-2011, confirmed the classification of services provided by the appellants to their foreign clients under TTA service. Aggrieved against the said order, assessee filed appeal with Commissioner Appeals, who vide Order dated 29-12-2011 allowed their appeal. 2. Aggrieved, Department has filed this appeal, inter alia, on the following grounds: 2.1 The activity of assessee does not involve in any know....
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.... client. Contrary to the requirements of knowledge sharing, advice or consultancy under 'Scientific or Technical Consultancy', assessee delivers only 'customs synthesized chemical compound' describing development synthesis work for intermediate. 2.5 For the purchase orders, it is clear that no advice or consultancy is being provided by assessee to their clients. The technical testing and analysis invariably require scientific expertise. It is that expertise of testing and analysis, assessee wants to project as major activity, to claim their services under Scientific or Technical Consultancy. 3. On behalf of the department, Ld. AR Shri Nagaraj Naik, reiterated the grounds of appeal. 4, Ld. counsel Shri T.Jagapati Rao, on b....
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....on 65 (105) (zzh) means any service provided or to be provided to any person, by a technical testing and analysis agency, in relation to technical testing and analysis. "Scientific or Technical Consultancy" services in terms of Section 65 (92) means "any advice, consultancy, or scientific or technical assistance, rendered in any manner, either directly or indirectly, by a scientist or a technocrat, or any science or technology institution or organization, to any person, in one or more disciplines or science or technology." "Section 65 (105) (za) of the Finance Act, 1994 defines the term taxable service for Scientific or Technical Consultancy Services as under: "Taxable service means any service provided or to be provided to any person, by....
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....emand the results of the Analytical Tests conducted on the sample compound which is produced during conducting the research. In fact, very often the tests form the basis of the acceptance or rejection of the research. 7. It is further seen that the Research Agreement dated 18-08-2003 between GRUNENTHAL GmbH and the assessee interalia, lays down the following scope of work to be performed: 1.1 The CONTRACTOR shall Three (3) -months - Pilot - Project to synthesise chemical entities and carry out process research for GRUNENTHAL and provide technical expertise in the area of organic synthesis Including regular and final reporting in accordance to the provisions of this agreement and the protocol to be agreed upon (hereinafter the "Servic....
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....he foregoing, what emerges is that the assessee is required to synthesize chemical entities and submit monthly reports of the progress thereof. Merit is found in the departments' contention that these test reports are more about the produced compound in terms of its purity, constituents, the degree of deviation from expected etc. There can be no doubt that such activity will involve innumerable trials, testing of intermediate and final resultant chemical entities and scientific analysis at every stage. In fact the service performed by the assessee is closely monitored by GRUNENTHAL by telephone, fax and e-mail( para 2.3 of agreement) . It is not the case that the assessee is in the position of a scientific or technical consultant to GRU....