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TMI Blog2018 (5) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... ued that regulatory services obtained for getting service of their product registered/approved by authorities abroad cannot be classifiable under the head of “Scientific and Technical Consultancy Services” - Held that: - the regulatory services are not in the nature of “Scientific and Technical Consultancy Services” and therefore no Service Tax under the said head - reliance placed in the case of Administrative Staff College of India [2008 (8) TMI 194 - CESTAT, BANGALORE] - demand set aside. Online Database Access and Retrieval Service - It has been argued that the said service provider does not provide “online” services and there is no “online” service provider - Held that: - In absence of online database access, no Service Tax can be demanded under the head of “Online Database Access and Retrieval Service” - demand set aside. Management Consultancy Service - It has been argued that under “Management Consultancy Service” only activities in the nature of management of any organisation are covered - Held that: - It is seen that the service provided by technical assistance and consultancy in identifying avenue and product promotion. The said activity falls under the “Management Consu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service. 2.2 He further pointed out that the demand under the head of "Scientific and Technical Consultancy Services" had been made in respect of services received from M/s Regulatory Concepts. M/s Regulatory Concepts provided executory services of registration of therapeutic products. The said service is not in the nature of any advise, consultancy or technical assistance in the science and technology and therefore no tax can be levy under the said head. He relied on the clause (1) of the agreement with M/s Regulatory Concepts which is reproduced as follows:- "(a) IPCA appoints Regulatory Concepts as its consultants: (i) to advise and assist IPCA in the registration, listing and clinical research of its therapeutic goods in Australia and New Zealand; (ii) to coordinate the registration of dossiers with the TGA for each of the Products; and (iii) to provide the other services contemplated in Annexure-2 (b) Bristol is the Australian Sponsor and Distributor of the Products with the TGA (c) The products will be manufactured by IPCA for distribution in the Australian market once they have been registered with the TGA." The other services mentioned in Annexure 2 of the Ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e argued that under "Management Consultancy Service" only conducted either directly or indirectly in connection with the management of any organisation in any manner and advice, consultancy or technical assistance relating to financial management, human resources management, marketing management, production management, logistics management, procurement and management of information technology resources or other similar areas of management. He argued that the activities rendered by these parties cannot in any circumstances be classifiable under the definition of "Management Consultancy Service" in as much as these parties have not provided any services which is concerned in any with the functioning, operations, affairs, etc. of the management of appellant/organisation. M/s B-SRM is merely providing assistance for procurement of various services and goods for marketing of final products exported by the appellant. Mr. Nilesh Bhatt is advising the appellant to acquire new company. These parties are not giving any advice or technical assistance to the appellant relating to the management of the organization and therefore the activities performed by the foreign collaborators can by no st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of Genom Biotech Pvt. Ltd. Vs. CCE, Nashik - 2016 (42) STR 918 (Tri.-Mumbai) to assert that no Service Tax liability would come under the head of "Business Auxiliary Services". In the said decision following has been observed as under:- "15. Services that are not connected with manufacture or with the transport of goods till the customs frontier of the country can be disassociated from use within the country and hence would not lie within the ambit of the legal fiction of import of services. Services that are undeniably rendered by a foreign 'service provider' in relation to the goods sold abroad cannot be presumed to be covered by the legislative intent to tax. To tax a service using the legal fiction of import and then reimburse that tax because the service was not required for any activity within the country is an exercise in futility and is contrary to the objectives of and means devised for export promotion by the State. 16. The tax liability has been crystallized in the impugned order by recourse to Rule 3(iii) of Taxation of Services (Provided from Outside India and Received in India) Rules, 2006 by deeming the provision of 'advertising agency service' by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith law." Relying on the said decision, it is held that no Service Tax can be demanded on the said service. The demand under the head of "Business Auxiliary Services" is therefore set aside. 4.1 The second issue relates to demand under the head of "Scientific and Technical Consultancy Services". It has been argued by the learned Chartered Accountant that the services are in the nature of getting permissions/registration for their product and not in the nature of "Scientific and Technical Consultancy Services". He argued that regulatory services obtained for getting service of their product registered/approved by authorities abroad cannot be classifiable under the head of "Scientific and Technical Consultancy Services". Learned CA relied on the decision of Tribunal in the case of Administrative Staff College of India - 2009 (14) STR 341 (Tri.-Bang.). In the said decision following has been held as under:- "13. As regards the leviability under the category of 'Scientific and Technical Research,' we find that even though the appellants had registered with the council of 'Scientific and Industrial Research,' they do not come out the activity of a scientist or technocrat. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service provider does not provide "online" services and there is no "online" service provider. In absence of online database access, no Service Tax can be demanded under the head of "Online Database Access and Retrieval Service". The demand on this count is also set aside. 4.3 The next issue relates to demand under the head of "Management Consultancy Service". The service received in respect of developing and permitting new bulk drugs, services of identifying licensing opportunities, counselling in respect of negotiation tactics and strategies, assisting in conducting negotiation with prospective corporation partners, etc. It has been argued that under "Management Consultancy Service" only activities in the nature of management of any organisation are covered. It is seen that the service provided by technical assistance and consultancy in identifying avenue and product promotion. The said activity falls under the "Management Consultancy Service". The demand on this count is upheld. 4.4 The appellant have also contested the demand on revenue neutrality. The data submitted by them, shows that part of the final product is exempted and therefore the situation is not fully revenue neu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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