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2022 (1) TMI 256 - AT - Service Tax100% EOU - Levy of service tax - export of services - Scientific and Technical Consultancy Service - Technical Testing and Analysis Service - bundled pre-production services - Rule 3 of Place of Provision of Service Rules, 2012 (POP) - HELD THAT:- Reliance placed in the case of COMMISSIONER OF SERVICE TAX VERSUS BA RESEARCH INDIA LTD. [2009 (11) TMI 213 - CESTAT, AHMEDABAD] where it was held that the said services came under rule 3(1)(2) of the Rules. It is very much clear that the performance of the service is not complete until the testing and analysis report is delivered to its client. In the present case, when such reports were delivered to the clients outside India it amounts to taxable service partly performed outside India. The performance of testing and analyzing has no value unless and until it is delivered to its client and the service is to be completed when such report is delivered to its client. Thus, delivery of report to its client is an essential part of the service, report was delivered outside India and same was used outside India. This is not the disputed fact. We hold that the respondent satisfied the conditions of rule 3(2) and accordingly, the respondents are eligible for the exemption under Notification No. 11 /2007-ST, dated 1-3-2007. Appeal allowed - decided in favor of appellant.
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