TaxTMI 
TaxTMI 
2025 (10) TMI 813
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....ce Tax Appeal No. ST/30379/2017 ST/30053/2021 ST/30326/2017 ST/30325/2017 ST/30324/2017 ST/30731/2017 ST/30732/2017 Order in Appeal No & Date NA NA HYD-SVTAX- 000-APP- 0209-16-17 dated 07.11.2016 HYD- SVTAX-000- APP-0210-16- 17 dated 07.11.2016 HYD- SVTAX-000- APP-0211-16- 17 dated 07.11.2016 HYD.SVTAX- 000-APP-352 dated 03.03.2017 HYD.SVTA X-000-APP- 353 dated 03.03.2017 Order in Original No & Date HYD- SVTAX-000- COM-143-16- 17 dated HYD-EXCUS- 002-COM-19- 20-21 dated 08.07.2020 28/2016 dated 30.09.2015 12/2016 dated 25.02.2016 13/2016 dated 25.02.2016 40/2016- Adjn.ST(R)(A C) dated 30.08.2016 41/2016Adjn.ST(R)( AC) dated 30.08.2016 13.12.2016 Period July 2012 to March 2015 April 2015 to Nov 2016 April 2014 to June 2014 July 2014 to Sept2014 October 2014 to Dec2014 January 2015 to March 2015 April 2015 to June 2015 SCN No & Date 116/2015 dated 20.10.2015 154/2017- Adjn. (ST) Commr. HYD- GST dated 28.03.2018 IV/16/27/2015 dated 12.05.2015 04/2015 dated 30.09.2015 05/2015 dated 03.12.20....
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....es selection and optimisation of excipients and prototype development. Process involves permutation and combination of different excipients and drug substance to get the desired drug dosage form i.e. tablet or capsule. e) Selection and Development of dissolution method: Different trials are conducted on development batches and reference product to select appropriate dissolution conditions for routine "Quality Control Testing". The finished products like tablets, capsules etc., will be produced at this stage in miniscule quantities / small scale for testing. No commercial production is carried out at this stage. f) Execution of Scale up batches: Execution of scale up batches (process evaluation batches) to evaluate and optimize the critical process parameters. Data generated during the process evaluation batches and data from the tests conducted on the finished product (for e.g. in vitro testing) at this stage should meet the predetermined quality attributes. g) Execution of Exhibit batches: Execution of finished product exhibit batches for performing bioequivalence studies and conducting stability studies for regulatory submissions. Exhibit batches are se....
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....e taxable service rendered. Normally, there was no provision for getting a cash refund of the Cenvat credit. An exception was under Rule 5 of CCR, which provided for cash refund of Cenvat credit of the inputs and input services used in excisable goods which are exported or taxable services which are exported. Of the 7 appeals before us, Appeals No.ST/30379/2017 & ST/30053/2021 assail the demand of service tax on the services rendered by the appellant to Mylan, USA. The remaining 5 appeals assail the rejection of refund claims under Rule 5 of CCR. In all the 7 appeals, the common issue to be decided is whether services rendered by the appellant to Mylan, USA should be treated as export of service or otherwise. 6. As per Rule 3 of the POPS Rules, the place of provision of service shall be the location of the recipient of the service except in case of Online Information Database Access or Retrieval (OIDAR) service where the place of the service provider should be treated as place of provision of service. Rule 3 of POPS Rules reads as follows: "3. The place of provision of a service shall be the location of the recipient of service. Provided that in case of service....
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....control, testing and review and collation of data and final compilation of dossier. The dossier has to be prepared by the appellant as per the Common Technical Document (CTD) form in terms of requirements of different health authorities such as USFDA and Australia Health Services. This dossier would contain information about the drug substance, drug product and clinical study reports. 9.3 As per the arrangement which the appellant had with Mylan, USA, instead of sending this dossier as hard copy or by email, the dossier was sent electronically by uploading it. 9.4 The C&AG conducted an audit during the period 2014-15 and it took a view that the services rendered by the appellant to Mylan, USA are in the nature of OIDAR and not in the nature of Scientific or Technical Consultancy service. As per proviso to Rule 3 and as per Rule 9 of POPS Rules, OIDAR services are deemed to have been provided at the place of business of service provider, which, in this case, is Hyderabad. Therefore, service tax was demanded from the appellant on the services which are rendered to Mylan, USA. 9.5 On the same ground, the appellant's applications for refund of Cenvat credit under Rule 5 of CCR....
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....sting case of the appellant. 10.4 As per Rule 6A of the Export of Services Rules, any service provided or agreed to be provided shall be treated as export of service and the place of provision of service is outside India. In this case, it was not outside India as per Rule 9 of the POPS Rules. 10.5 It is an admitted fact that the appellant's clients abroad had access to data, in a specified format, for specified purposes through computer network. The dossier is a document which contains the technical data of the tests conducted on humans, manufacture of Active Pharmaceutical Ingredients and Pharmaceutical Formulations. 10.6 In view of the above, the appellant's submission that it had not provided OIDAR services is not correct. The service rendered by the appellant can only be considered as OIDAR service and not as Scientific or Technical Consultancy Service. 10.7 The impugned orders may be upheld, and the appeals may be dismissed. 11. We have considered the submissions on both sides and perused the records. 12. We find that as per the agreement, the appellant had to develop pharmaceutical products and conduct various tests and provide complete data in the form of d....