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2013 (8) TMI 376 - AT - Service TaxTechnical Testing Analysis u/s 65(105)(zzh) or Business support Service u/s 65(105)(zzq) – Duty Demand – Interest and Penalty - Held that:- Prima facie the activities/ operations of the assesse under the research agreement were classifiable as technical testing and analysis service and the assesse could be considered as a technical testing and analysis agency, providing the taxable service specified in Section 65 (105)(zzh) as ‘Technical Testing and Analysis’, and not support of business service classifiable u/s 65(105) (zzzq) of the Finance Act, 1994 - Relying on M/s Paul Merchants Limited & Others Versus CCE, Chandigarh[2012 (12) TMI 424 - CESTAT, DELHI] In terms of Section 65A (2)(a) the activities of the assesse generically considered should be attributed to the more specific description of taxable services enumerated in the in sub-clauses of Sec 65(105) than the other sub-clause [Section 65 (19)], providing a more general description -Further, in respect of reimbursements received the assesse would be prima facie entitled to immunity to levy of service tax, under the Export of Service Rules, 2005, since the services were provided to an overseas company having a permanent establishment outside India, utilised /consumed overseas for the pharmaceutical business of that entity and reimbursements were received by the petitioner in convertible foreign exchange. Waiver of pre- deposit - The assesse had made out a strong case in the substantive appeals – full waiver of Pre-deposit allowed and stayed till the pendency of appeal – Decided in favor of assesse.
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