2018 (2) TMI 1681

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....1-2012. 2. The brief facts of the case are that the appellant entered into an agreement with their holding company, M/s Merck, USA who is a pharmaceutical company engaged in, among other things, research, development and manufacture of medicines and vaccines. In the course of their business M/s Merck, USA intended to do certain clinical trials for newly developed drugs, in India. For this purpose, they have entered into two separate agreements, one with the appellant and other one with M/s SIRO, Thane. The common purpose of these agreements is to conduct clinical trial in India as per the requirement of M/s Merck, USA. The present dispute is with reference to service tax liability of the appellant for their activities connected to such cli....

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.... and efficacy of such drugs are exempted. The nature of activities undertaken by the appellant are, admittedly, in connection with such testing and analysis of new drug on human participants. Accordingly, he submitted that the services are clearly exempted by the said notification. 5. Without prejudice to the submission on merit, as above, the learned Counsel submitted that the services of clinical trial are carried out for and on behalf of M/s Merck, USA, their holding company. The beneficiary of clinical trial is M/s Merck, USA. The payment in foreign exchange is received from M/s Merck, USA. All the ingredients to satisfy export of service have been fulfilled in this case. Relying on the decision of the Tribunal in Paul Merchants Ltd. v....