TaxTMI 
TaxTMI 
2022 (1) TMI 256
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.... of the appellant is engaged in manufacture and export of pharmaceutical products and the other unit is engaged in rendering Research and Development services. Revenue opined that prior to 1.7.2012, two services rendered by the appellants i.e., stability studies and technical testing and analysis of new drugs were classifiable under the taxable category of "Scientific and Technical Consultant Service" and "Technical Testing and Analysis Service". Revenue also opined that various services like procurement of raw materials and packaging materials; development of analytical method; innovator/ competitor sample analysis; prototype formulation development; product specification development; exhibit batch manufacturing; stability study and data g....
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.... complies with the specifications provided by Apotex Inc. except as agreed between the parties". He submits that the appellants were not supplied with any raw material by their masters M/s. Apotex Inc. as is evidenced by the Chartered Accountant certificate dated 6.11.2014 and Form-3 CEB filed by them with the Income Tax Department. 2.1 Learned counsel for the appellant submits that neither the Finance Act, 1994 nor the Central Excise Act, 1944 define "Clinical Research Organisation". As the appellant is an organisation conducting clinical trials on formulation, testing and analysis of new drug on human volunteers, they are not debarred for availing the exemption contained at Sl. No.7 of Mega Exemption Notification No.25/2012 ST dated 20....
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.... i.e., M/s. Apotex Inc. is located outside India is a fact well known to the department; only because the service is rendered in India, it does not cease to be an export of service. If such a proposition is accepted, no software exports including BPO services can be considered to be exports; in terms of the Circular No.141/10/2011-TRU dated 13.5.2011, the words 'used outside India' should be interpreted to mean that 'the benefit of the service should accrue outside India'. Learned counsel for the appellant also submits that the very same department has taken a contrary view in respect of the nine services denying the exemption on procurement of raw materials for pre-production activities. Such contrary view cannot be taken by the department....
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....r appreciation are reproduced below: "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 provided to their foreign clients as export of service to know the provisions of the export of service which are reproduced here as under: "Export of Services Rules, 2005 3. Export of taxable service.- (i) Export of taxable service shall, in relation to taxable services,- .......... (ii) specified in sub-clauses (a),......(zzh), (zzi),..... and (zzzp) of clause (105) of Section 65 of the Act, be....
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....tudy 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 also fortify the views taken hereinabove that the service provided by the appellants was export of service and I am inclined to them such taxable service as export of service and therefore not taxable." 10. From the above provision it is clear that the said services came under Rule 3(1)(2) (sic) of the Rules. It is very much clear that the performance of the service is not complete until the testing and analysis report i....