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2013 (9) TMI 324 - CESTAT NEW DELHIExport of Service - Scientific and Technical Consultancy Service u/s 65(105)(za) - Revenue was of the view that the assesse had provided the taxable services of scientific and technical consultancy and it does not constitute export of services under Export of Services Rules, 2005 - Held that:- Prima-facie the assesse’s activity was of service which was scientific and technical consultancy services taxable u/s 65(105)(za) - The service provided by the assesse had to be treated as an export of service and hence, in terms of Rule 4 of the Export of Services Rules, no service tax would be chargeable - the activity of the assesse would be taxable only when the service had been provided to a customer in India and it would be treated as an export of service under Export of Services Rules, 2005, if it had been received by the person abroad and had been used by that person in relation to his business and payment for the same had been received in convertible foreign exchange. The service of developing the process of synthesis of drug molecules provided by the assesse had to be treated as having been provided to their overseas they cannot be treated as sub-contracts and on that basis having provided the taxable service - Since the service of scientific and technical consultancy covered by Section 65(105)(za) was service in relation to business and is covered by a Rule 3(1)(iii) of the Export of Services Rules and the same prima facie had been received by the overseas clients for the use in their business, the payment for which had been received in foreign currency. Waiver of Pre-deposit – Prima facie assesse had a case in their favour - order set aside - The requirement of pre-deposit of service tax demand, interest and penalty was waived for hearing of the appeal and recovery to be stayed till the disposal of the appeal – Stay granted.
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