Payment to foreign labs for clinical trial analysis taxable as Technical Testing and Analysis under Section 65(105); penalties set aside

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....CESTAT held that the appellant procured clinical trial/study analysis from foreign service providers under a Master Laboratory Agreement and, on making payment in foreign exchange, the services are taxable as Technical Testing and Analysis services under Section 65(105). The Tribunal followed prior precedent that delivery of reports is integral to the service and affirmed the tax demand for the normal limitation period with interest. However, it found that the appellant could have availed CENVAT credit and there was no mens rea to evade tax; accordingly demands raised by invoking the extended period of limitation and all penalties were set aside. Appeal allowed in part.....