TMI Blog2009 (11) TMI 213X X X X Extracts X X X X X X X X Extracts X X X X ..... such testing and analysis have been sent abroad which is the secondary aspect. The main testing and analysis were performed by the service provider was only in India wholly performed in India and not even part of the services were performed outside India hence the service cannot be termed as ‘export outside India’. Revenue further alleged that they are at the best receiving the input service of the courier outside India and their service is not qualified by the exemption under Notification No. 11/2007-ST, dated 1-3-2007. 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 c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al for their clients in India and outside India and providing service under the category of Technical Testing and Analysis as defined under section 65(106) of the Finance Act, 1994, read with sub-clause (zzh) of clause (105) of section 65 of the Act. On scrutiny of ST-3 return filed by the respondents, it was observed that the respondents had not paid service tax on the amount of Rs. 4,04,12,925 received by them against the export service. The service tax liability was worked out, statements were recorded and it was observed that the services provided by the respondents to their foreign clients were wholly performed in India and did not merit exemption under Export of Services Rules, 2005. 3. A show-cause notice was issued and same was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... After hearing at length we find that the appeal can be disposed of at this stage as the issue involved in this case of narrow compass and after rejecting the stay petition we take up the appeal for hearing. 8. We have considered the submissions made by the learned DR. 9. The issue before us is whether the service conducting clinical trials provided by the respondents are taxable service under the category of technical testing and analysis as defined under the Act. In the instant case the respondent has shown as the service provided to their foreign clients as export of service to know the provisions of the export of service which are reproduced here as under : Export of Services Rules, 2005 3. Export of taxable service. (1) Exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r/client. The clients do not have any value for merely performance if no report is delivered to them. Consideration of the service is received by the appellants only when they deliver the study report and the certificate of the testing and analysis of the clinical trials conducted by them. Thus, delivery of the report is an essential part of their service and the service is not complete till they deliver the report. The report is delivered outside India and the same is used outside India. These facts also fortify the views taken hereinabove that the service provided by the appellants was export of service and I am inclined to them such taxable service as export of service and therefore not taxable. 10. From the above provision it is cle ..... X X X X Extracts X X X X X X X X Extracts X X X X
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