TMI Blog2015 (1) TMI 229X X X X Extracts X X X X X X X X Extracts X X X X ..... delivered to the clients outside India it amounts to taxable service partly performed outside India. The performance of testing and analysing has no value unless and until it is delivered to its client and the service is to be complete 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-S.T. dated 1-3-2007. - Matter remanded back. - ST/309/2009-DB, ST/425/2009-DB - Final Order Nos. 21890-21891/2014 - Dated:- 15-10-20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appropriate and the appellant is eligible for the benefit. Paragraphs 9 10 of the decision relied upon by the learned counsel are relevant and for better appreciation are reproduced below: 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.- (i) Export of taxable service shall, in relation to taxable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elivered 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 clear that the said services came under Rule 3(1)(2) (sic) of the Rules. It is very much ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he above the matter is required to be remanded for fresh consideration taking note of the observations made by us hereinabove. As regards the Departments appeal, the Interim Order and the orders relied upon in the Interim Order can be considered as observations and on that basis the lower authority can consider the issue afresh as regards the issues raised in the appeal filed by the Revenue. In the result, the impugned order is set aside and both the Revenue s appeal as well as the partys appeal are allowed by way of remand with a direction to the original authority to decide the issue in accordance with our observations in the Interim Order referred to above. (Operative portion of the order has been pronounced in open court on 15.10. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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