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TMI Blog2014 (5) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... peal No.ST/475/2011, by which, the learned CESTAT has allowed the said appeal preferred by the respondent by quashing and setting aside the orders passed by both the authorities below and holding that the respondent shall be entitled to refund as claimed, with the following proposed substantial question of law :- "Whether the Hon'ble CESTAT, WZB, Ahmedabad is right in holding that the services in dispute were used in the authorized operations by a unit situated in SEZ, even though the "authorized operations" as mentioned in the Letter of Approval of Development Commissioner, KASEZ meant "manufacturing" and in its letter dated 2/7/2010 Dy.Collector, KASEZ had asked the said assessee to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were silent about this objection. (b) The bills raised by CHL did not contain nature of service provided and also the appellants had not produced evidence to show the receipt and use of the specified services in authorized operations in the SEZ. In the defence reply the appellants had not clarified that which services they had received and used in relation the authorized operations in the above said SEZ. There may be many services which can be termed as "Scientific & Technical Consultancy Service", and it is to be proved by the appellants at the time of filing the return claim that service tax they had paid on the services received by them are related to the refund claim and they have received and used the same in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are specified in the list of approved taxable services. (f) The bills of CHL described the service provided as "charges for rendering technical and scientific services for research, development and analysis and testing of the products as identified by the appellants and assisting in activities relating to securing of registration and/or for regulatory approval by appellants for these products in USA and Europe". From the description of services mentioned it cannot be ascertained that the said services and the services related to "regulatory approval by for products in USA and Europe appears in the list of approved services. The appellants had not submitted any clarification in regard that how these services can be classi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 26(e) of "The Special Economic Zone Act, 2005", provides exemption from Service Tax under Chapter V of the Finance Act, 1994 on taxable services provided to a developer or unit to carry on the authorized operations in the SEZ; (h) The appellants had claimed that they had received services related to "Scientific & Technical Consultancy Service" from CHL. This means that manufacturing activity or authorized operation has not been started in the SEZ but they have got the work done from outside. However, the appellants had not submitted any documents/permission from KASEZ in this regard and as such this case cannot be considered as "sub-contracting", as specified in Rule 41 of "The Special Economic Zones Rules 2005". ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... setting up a unit in SEZ and they rendered technical and scientific services for research during the aforesaid period and therefore, it cannot be said that the services were rendered for manufacturing and/or was related to various operations. Submitting accordingly, it is requested to admit/ allow the present appeal. 4.00. On the other-hand, Mr.Mihir Joshi, learned Senior Advocate appearing with Mr.Dhaval Shah, learned advocate appearing on behalf of the respondent has vehemently submitted the aforesaid issue is no longer res-integra and the same is covered in favour of the assessee in the decision of this Court in the case of Commissioner of C. Ex., Ahmedabad-II Versus Cadila Healthcare Ltd., reported in 2013 (30) STR 3 (Gujarat). It is s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd analysis, excise duty has been paid thereon. Since production of medicaments are subject to approval by the regulatory authorities of various countries to which such drugs are exported, the assessee is required to obtain approval before starting commercial production. Thus the final product can be manufactured only upon approval of the regulatory authority after the product undergoes technical testing and analysis. Under the circumstances, it cannot be gainsaid that the activity of testing and analysis of the trial batches is in relation to the manufacture of final product. Unless such testing and analysis is carried out, it would not be possible to produce the final product inasmuch as unless the trial batches are sent for testing and a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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