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2018 (7) TMI 275 - AT - Service TaxTechnical testing and analysis services - clinical trial to new drugs for various manufacturing companies (sponsors) - Benefit of N/N. 11/2007 ST dated 01.03.2007 and a subsequent N/N. 25/2012 ST dated 20.06.2012 - Department formed an opinion that respondent are participating in various drug trials in the capacity of trial site, in as such, their activity is not exempted vide the said Notification - Held that:- Perusal of both these Notifications makes it a mandate that the exemption is for such technical testing and analysis service as are provided or to be provided by a Clinical Research Organisation approved to clinical trials by the Drug Controller General of India. Thus, it becomes clear that the claimant of exemption of this Notification should be a Clinical Research Organisation. The Commissioner has held the respondent as a CRO despite the apparent fact that as per the mandatory contracts for the purpose to be entered into by the sponsor, the respondents are mentioned as trial sites. Not only this, in addition thereto, the CRO is also named in the contract itself, i.e., J.S. Icon Clinical Research India Ltd. Once two different entities are apparent from the contract itself, distinguishing the respondent to be called as mere trial site with someone else as the CRO and the exemption of the impugned Notifications is available only to the CRO, the Commissioner (Appeals) has wrongly allowed the respondents to avail the said exemption. Appeal allowed.
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