TaxTMI 
TaxTMI 
2023 (11) TMI 950
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....g to grow to the Global level on the strength of its deep-rooted values and key strategic Investments in the field of Innovation and Development related to oncology drugs. 3. The petitioner develops, manufactures and makes specialty pharmaceutical products in the area of oncology and has also emerged as a competing centre for development and production of Active Pharmaceuticals Ingredients (APIs) and) Finished Dosage Forms that are used in chemotherapy. Petitioner has its API manufacturing Plant at Kalyani, West Bengal and Finished Dosage manufacturing plant at Baddi, Himachal Pradesh. Petitioner's Innovation and Development Centre at Gurugram, Haryana, has also been recognized by Department of Scientific and Industrial Research (DSIR), Ministry of Science and Technology, Government of India. A true copy of the recognition certificate dated 27.04.2015 Issued by the DSIR is annexed as Annexure P-1. The petitioner is continuously enhancing the 1&D scale through investments in equipment capabilities and people. Scientists are engaged in developing innovative chemistry processes as well as formulations and discharge forms for treatment of cancer. The laboratories of the petition....
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....titioner and FKDG. 6. Another Agreement dated 01.07.2021 Annexure P-3 was entered into between the petitioner and FKDG, which is called Research and Development Service Contract. The Petitioner had also entered into Service Agreements with FKDG on 04.01.2013 and 01.01.2018. As per the said agreement, the Petitioner had to provide services only to FKDG and not to any other entity. The scope of the services as per the Agreement -reads as under: "The support services to be rendered by the contractor includes:- 1) Clinical research and medical services includes but not limited to- 1. Bioequivalence studies - Conduct and management of bioequivalence studies to support product registration in EU/US/PHM countries. * Define bloequivalence study strategy to cater worldwide market. * Guidance for designing bioequivalence studies. 2. Pre clinical Studies - * Design and management of preclinical studies (In vitri& in vivo) to support product registration in PhD markets. 3. Generation of medical regulatory documents - Generate package inserts (PI), summary of product characteristics (SPC), patient infor....
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.... and Feb 2019 to Mar 2019, the details of which are as follows:- Sr. No. Period Amount 1. July, 2017 Rs. 3,19,49,187/- (with payment of IGST) 2. Aug-Sep, 2017 Rs. 1,98,21,083/- 3. Oct 2017 to Mar 2018 Rs. 8,17,33,346/- 4. April-June, 2018 Rs. 3,88,77,621/- 5. July 18 to Sept 2018 Rs. 2,37,30,088/- 6. Oct 2018 to Jan 19 Rs. 1,45,49,676/- 7. Dec 18 to Jan 19 Rs. 2,52,92,919/- 8. Feb 19 to Mar 19 Rs. 2,23,62,673/- 9. Thereafter, the authorities scrutinized documents and notified certain discrepancies by issuing the deficiency memo dated 28.09.2018 (P-6), in respect of claims for the period July, 2017, Aug, 2017 to Sep, 2017 and Oct 17 to March, 2018 and the petitioner cleared all the deficiencies by providing the required information (P-7). However, on 15.05.2019 (P-8), a show cause notice was issued to the petitioner with regard to refund of claims for the period April-June, 2018, July-Sep, 2018 and Nov, 2018 alleging therein that the services exported by the appellant did not fulfill the conditions of export under Section 2 (b) (v) of IGST Act, 2017. The petitioner gave his reply (P-9) to the show ca....
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....asis and further held that the appellant had provided services at cost plus 11% mark up and had received remittance in convertible foreign exchange and the appellant satisfied all the conditions. 12. In the present case, no show cause notice has been issued for the claim for five invoices i.e for the period July, 2017, Aug-Sept, 2017, Oct to Mar, 2018, Dec, 2018 to Jan 2018 and Feb 2019 to Mar, 2019. The petitioner had submitted eight refund claims. Out of those 08 claims, show cause notice was issued only in respect of three claims and for the remaining five claims, show cause notice was never issued. This fact is not disputed in the reply filed by the respondents. It is not in dispute that issuance of show cause notice and granting of opportunity of hearing before rejecting of any refund claim, is a statutory requirement. 13. The petitioner has been exporting services under an agreement with FKDG for a long time i.e from 2011 onwards. The Assistant Commissioner in its order dated 29.07.2016 has held that the service provided by the petitioner is an export of service and this order was binding on the respondents and it could not be re-considered when no appeal has been prefe....