TMI Blog2013 (8) TMI 376X X X X Extracts X X X X X X X X Extracts X X X X ..... ndigarh[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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0,55,917/-; and Rs.86,25,715/- in respect of reimbursements received by the petitioner, for providing Business Support Service. In addition, the adjudication order confirmed specified amounts of education cess, interest and penalties. 2. Initiation of these proceedings and assessment of petitioners liability pertain to two transactions (a) services rendered by the petitioner to Merck, USA in relation to clinical trials in India; and (b) reimbursements received from related parties outside India during the relevant periods (1.4.06 to 31.3.07) . The adjudication order concluded in conformity with the assumptions in the show cause notices that the petitioners provided Business Support Service, a taxable service to Merck, USA and received re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out clinical trials including vigilance, adherence to protocols, phama co-vigilance; and co-monitoring the selected sites etc. Before conduct of clinical trials, the petitioner is required to obtain necessary approvals from the Drug Controller General of India (DCGI), the appropriate Indian regulatory authority. As is apparent from the letter dated 31.7.2006 addressed by the DCGI to the petitioner, the authority issued a NOC to the petitioner for conducting clinical trials subject to the conditions stipulated thereunder. A similar NOC was issued in favour of M/s SIRO Clinpharma Pvt. Ltd., another Clinical Research Organisation whose activities are with the coordination ambit of the petitioner, in relation to clinical trials conducted for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the framework of the agreement relevant to the issue (dated 01.04.2006), Merck USA entered into a research agreement with the petitioner and a clinical service agreement with another research organisation (SIRO); the other research organisation enters into further agreements with investigations; doctors and patients. The eventual data/product of the clinical research is furnished to Merck USA, the holding company pursuant to the coordination efforts of the petitioner. The clinical research data furnished to Merck USA is thus prima facie, the product of clinical research synergies between the petitioner and the other CRO(SIRO). 8. The adjudication order concluded that services provided by the petitioner to Merck USA were in the nature of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ific 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 from Merck USA the petitioner 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 (Merck, USA), 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. The decision of the Tribunal in Microsoft (India) Pvt. Ltd. is no longer currently operative in view of the decision of f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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