9911796707
TMI Blog2024 (7) TMI 1237X X X X Extracts X X X X X X X X Extracts X X X X ..... sponsors outside India under tax invoice with 18% GST as the applicant s understanding was that the place oi supply for such services falls in India under Section 13 (3) of the IGST Act, 2017. The Applicant is of the view that with respect to Research, Development and Testing process, the activities carried out by both the industries are inter linked with each other and in few cases, the Research, development, testing and analysis are the same and considering the similarities between pharmaceutical and agro-chemical sectors, the research and development services provided by the applicant squarely falls under the various types of services provided in the notification. Whether N/N. 04/2019-Integrated Tax, issued dated 3O h September 2019 shall be applicable on the services supplied by the Applicant, i.e., research and development services provided in relation to agrochemical sector? - HELD THAT:- Any discussion about the supply of such services rendered within the Taxable Territory is not relevant to the issue in question. However, it is important to delve into the Agreements executed by the IIBAT /Applicant with the sponsors located outside India, in order to ascertain the applicab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted Tax, dated 30th September 2019 are applicable to research and development services related to Pharmaceutical sector only and shall not be applicable on the services supplied by the applicant, in terms of the agreements entered into with the foreign Service recipients, as there are no provisions to include or consider Agro-chemical sector within the ambit of the impugned notification. X X X X Extracts X X X X X X X X Extracts X X X X ..... icant being a Laboratory / Test Facility has its study scientific/laboratory/field operations in the property situated at Survey No.563 and 564, BDO Office Road, Padappai, Kancheepuram District 601 301, Tamil Nadu, India. The applicant is registered under Goods and Services Tax law (GST) vide Registration number - 33AAATF0061E1ZG. 3. The Applicant is recognized by Department of Scientific and Industrial Research (DSIR), Ministry of Science and Technology, New Delhi as a Scientific and Industrial Research Organization (SIRO) and by the Ministry of Finance under Section 35 (i) (ii) as an Institution engaged in scientific research entitled to exemption Under Section 10 (21) of the Income TaxAct 1961. 4. The Applicant is a Test Facility' (TF) as per guidelines of NGCMA (i.e.,) National Good Laboratory Practices Monitoring Authority under the aegis of Department of Science and Technology, Government of India. 5. The Applicant is also certified by TUV NORD, Germany for management systems as per ISO 9001:2015, ISO 45001:2018, ISO 14001:2015, ISO 27001: 2013 and ISO 17025:2017 for the scope of conducting non-clinical health and environmental safety studies in the field of Toxicology, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of material (hereinafter referred to as the "test item") based on the agreement pursuant to which the research, development, testing and analysis will be carried out. 4.3. The research, development and testing methodologies are well documented as per the global guidelines and standards followed by the applicant. The process undertaken by the applicant can be explained in brief as under,- a. Receipt of Test item from the sponsors b. Documentation of Test item received for retaining sponsors confidentiality and eliminating bias. c. Recording the process of conducting the research, development and testing analysis (Protocol). d. Conducting the research, development and testing analysis. e. Documentation of the report explaining the methodology used for research, development and testing as well as providing results f. Submissions of the result/report to the sponsors. 4.4. The Applicant is into providing the above services related to the Agrochemical Sector and Pharmaceutical Sector in the form of major heads as follows: Sr. No. Nature of Services Brief description of Services 1. Chemistry IIBAT offers a broad spectrum of research and development of chemical analys ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent with aquatic and terrestrial ecotoxicology studies employing various species which are thoroughly characterized. 4.5. During the process of research, development and technical testing, the test items as provided by the sponsors are consumed. In other words, the test items are utilized for preparing the study report after completion of technical testing. Since such items are consumed during the process, they are not returned. The result of the tests represents the findings of the research and development as per the expectation of the global regulatory organizations. 4.6. As per the process undertaken by the applicant, they carry out complete objective of research, development and testing with pre-determined methodology prescribed by reputed organizations based on the protocol agreed in advance with the sponsor. The applicant merely submits the findings of such research and development analysis in the form of a report to the sponsor." 5. Applicant's understanding of applicable rate of GST and its transactions with the sponsors outside India 5.1. "The applicant has been supplying the above services to its sponsors outside India under tax invoice with 18% GST as the applicant's ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ic liquor for human consumption;" 6.2. Section 7 of the Central Goods and Services Tax Act, 2017 ("CGST Act") provides for the Scope of supply as per GST law. The said section is provided as follows:- "(1) For the purposes of this Act, the expression - "supply" includes- (a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business; (aa) the activities or transactions, by a person, other than an individual, to its members or constituents or vice-versa, for cash, deferred payment or other valuable consideration. Explanation.-For the purposes of this clause, it is hereby clarified that, notwithstanding anything contained in any other law for the time being in force or any judgment, decree or order of any Court, tribunal or authority, the person and its members or constituents shall be deemed to be two separate persons and the supply of activities or transactions inter se shall be deemed to take place from one such person to another; (b) import of services for a consideration whether or not in the course or fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the rates of Central tax for various services. The tariff item relevant for the question under consideration are taxable at the rate of 9%. The relevant extract from the notification is reproduced below: Sr.No Chapter or heading Description of Services Rate (%) Condition [1) (2) (3) (4) (5) 19 Heading 9981 Research and Development Services 9 - 6.6. Further, it is relevant to note that export of service is defined under Section 2(6) of the lntegrated Goods and Services Tax Act, 2017 (IGST Act) as follows:- "export of services" means the supply of any service when, - (i) the supplier of service is located in India; (ii) the recipient of service is located outside India; (iii) the place of supply of service is outside India; (iv) the payment for such service has been received by the supplier of service in convertible foreign exchange [or in Indian rupees wherever permitted by the Reserve Bank of India]2; and (v) the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8. 6.7. Section 16 of IGST Act, 2017 defines Zero rated supply as follows:- (1) zero-rated suppl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e taxation or non-taxation of the supply of a service, or for the uniform application of rules, on the recommendations of the Council, hereby notifies following description of services or circumstances as specified in Column (2) of the Table A, in which the place of supply shall be the place of effective use and enjoyment of a service as specified in the corresponding entry in Column (3), namely:- Table A SI.No. Description of services or circumstances Place of Supply (1) (2) (3) 1. Supply of research and development services related to pharmaceutical sector as specified in Column (2) and (3) from SI. No. 1 to 10 in the Table B by a person located in taxable territory to a person located in the non-taxable territory. The place of supply of services shall be the location of the recipient of services subject to fulfillment of the following conditions: - (i) Supply of services from the taxable territory are provided as per a contract between the service provider located in taxable territory and service recipient located in non-taxable territory. (ii) Such supply of services fulfills all other conditions in the definition of export of services, except sub- clause (iii) pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and Bioavailability Studies Bio-equivalence is a term in pharmacokinetics used to assess the expected in vivo biological equivalence of two proprietary preparations of a drug. If two products are said to be bio-equivalent it means that they would be expected to be, for all intents and purposes, the same. Bio-availability is a measurement of the rate and extent to which a therapeutically active chemical is absorbed from a drug product into the systemic circulation and becomes available at the site of action. 9. Clinical trials The drugs that are developed for human consumption would undergo human testing to confirm its utility and safety before being registered for marketing. The clinical trials help in collection of information related to drugs profile in human body such as absorption, distribution, metabolism, excretion and interaction. It allows choice of safe dosage. 10. Bio analytical studies Bio analysis is a sub-discipline of analytical chemistry covering the quantitative measurement of drugs and their metabolites, and biological molecules in unnatural locations or concentrations and macromolecules, proteins, DNA, large molecule drugs and metabolites in biolo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ritory" means the territory to which the provisions of this Act apply. 7.3. Further, as per Section 2 (56) of the CGST Act, "India" means the territory of India as referred to in article 1 of the Constitution, its territorial waters, seabed and sub-soil underlying such waters, continental shelf exclusive economic zone or any other maritime zone as referred to in the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976 (80 of 1976). and the air space above its territory and territorial waters; 7.4. To determine whether the services are rendered in the taxable territory, reference needs to be made to the place of supply provisions detailed under the IGST Act. The provisions for place of supply of services are detailed in section 12 and 13 of the IGST Act. Since the location of the recipient of service, i.e., the sponsors, is outside India, reference shall be made to section 13 of the IGST Act in the present case. 7.5. As stated above, section 13 (3) of the IGST Act prescribes the place of supply where the service relates to goods which have to be made physically available to the supplier of service. In the present case, the samples with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a distinct person in accordance with Explanation 1 in section 8 since they are unrelated entities. 7.10. Therefore, the conditions pertaining listed in the notification are met by the Applicant 7.11. With respect to the activities listed out in the notification, the Applicant wishes to draw attention to their own business activities. Some of the major activities performed by the Applicant with respect to pharmaceutical and agrochemical sectors have been mapped with the activities described in the notification as follows: Sr. No. Nature of Services Brief description of Services Classification as per Notification No. 04/2019 1. Chemistry IIBAT offers a broad spectrum of research and development of chemical analysis services including Analytical chemistry, Radioisotopy, Physio chemical testing and Package testing needed for integrated discovery and development and also the registration of molecules, both pharmaceuticals and agrochemicals. These include crop residue studies, Drug metabolism and pharmacokinetics processed fractions, environmental fate, Stability Studies, ecotoxicology, plant/soil metabolism, product chemistry, Bioequivalence studies, Bio-availability studies, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olves development of customized animal model diseases and administration of novel chemical in doses to animals to evaluate the gene and protein expression in response to disease. Ecotoxicology : IIBAT does research and development with aquatic and terrestrial ecotoxicology studies employing various species which are thoroughly characterized. SI. No. 1-Integrated discovery and development SI. No. 2-Integrated Development SI. No. 3-Evaluation of the efficacy of new chemical/ biological entities in animal models of disease SI. No. 6-Safety Assessment/ Toxicology 7.12. The Applicant is of the view that based on the above table, the nature of activities performed by the applicant are squarely covered under Notification No. 04/2019-Integrated Tax. 7.13. Stating the above, the applicant inferred that the conditions in the notification have been met by the Applicant and the place of supply in respect of research and development services pertaining to agro-chemical sector rendered by the Applicant shall be the location of the recipient (i.e. sponsor), i.e., outside India. 8.0. Recommendations of the Fitment Committee in the 37th GST Council Meeting 8.1. The Applicant submitted t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s by the receiver is not material to the rendering of the service e.g. where a consultancy report commissioned by a person is given on a pen drive belonging to the customer. Similarly, provision of a market research service to a manufacturing firm for a consumer product (say, a new detergent) will not fall in this category, even if the market research firm is given say, 1000 nos. of 1 kilogram packets of the product by the manufacturer, to carry for door-to-door surveys. 6. The above clarification implies that samples given by foreign clients to Indian pharma companies should be goods and such goods should temporarily come into the physical possession or control of the service provider, and without this happening, the service cannot be rendered. 7. As is evident from judicial precedents [Vikas Sales Corporation Vs. Commissioner of Commercial Taxes], in order to be considered "goods", the article under consideration shall be a "marketable commodity", i.e. having the following features - (i) It should have an intrinsic value; (ii) It should be freely transferable. As samples provided by oversea clients are in the nature of chemical or biological molecules which are not marketable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the above, the applicant stated that the intention of the law was to tax such services at the place of effective use and enjoyment of the service. Therefore, it would not be incorrect to conclude that the same set of research and development services provided in respect of agro- chemical sector should be eligible to apply the same principles of determining place of supply and consequent taxability. 8.4. Further, drawing reference from the Education Guide of Service Tax, the applicant has pleaded that the place of supply cannot be determined based on section 13 (3) of the IGST Act since it will not cover services where the supply of goods by the receiver is not material to the rendering of the service e.g., where a consultancy report commissioned by a person is given on a pen drive belonging to the customer and contended that the place of supply of the research and development services pertaining to agro- chemical sector shall be determined based on the place of effective use and enjoyment of the service, and notification no. 04/2019 - Integrated Tax shall be applicable to the services rendered by the Applicant. 9.0. The Applicant has explained the Nexus among agrochemical and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he laboratory, in greenhouses, and in the field. Unless specifically exempted by national legislation, these Principles of Good Laboratory Practice apply to all non-clinical health and environmental safety studies required by regulations for the purpose of registering or licensing pharmaceuticals, pesticides, food and feed additives, cosmetic products, veterinary drug products and similar products, and for the regulation of industrial chemicals" 10.0. The Applicant narrated the similarities with regard to the Research and Development process for Agro-Chemical and Pharma products as follows: 10.1. Starting from the beginning, the early-stage process for discovering new pesticides or new drugs is very similar. Usually, a target or a mechanism of action is identified, and a screening is performed with a library of chemical compounds. 10.2. Applicant submits that the physicochemical parameters used by industry as an initial estimate of the probability of a molecule being a good pharmaceutical or pesticide are very similar. In fact, few of the most common chemical side chains of pharmaceutical molecules are the same as those for pesticides and are found in about the same relative fre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... services shall be considered as export of services since all other conditions for export of service were satisfied. The Gujarat Authority for Advance Ruling held that the said activity was a supply of service under the GST law. However, no ruling was given on the question whether the transaction qualifies as "export of service" as the same involves the determination of place of supply. 11.3. The applicant referred the decision pronounced in the case of M/s. Krish Biotech Research Pvt. Ltd. (Advance Ruling No. KAR ADRG 110/2019, dated 30-9-2019), wherein the Karnataka AAR refused to answer the question of whether the transaction qualifies as export of services. 11.4. Further, in certain other rulings, for instance in the case of Bilcare Ltd. (Order No. GST-ARA-117/2018-19/B-45-Mumbai, dated 26-4-2019), the place of supply was determined based on section 13 (3) of the IGST Act. It was inferred that place of supply where the goods are required to be made physically available by the recipient of service to the supplier of service, then the place of supply is the place where such services are actually performed. 11.5. The applicant has stated that the notification relating to place o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e healthy competition, it is necessary that a level playing field be provided to all. The intention to promote Indian exports is clear from the direction of the Finance Secretary in the file F.No. 345/58/2018-TRU stating that "We must follow the best international practice in this. We must change IGST law for this if need be. India has a great potential for service export and we must not let it lose competitive edge. Please find a way out." 12.3. Stating the above grounds, the applicant pleaded that the activities undertaken by the applicant are exactly the same as listed out in Notification No. 04/2019, where the place of effective use and enjoyment is the location of the sponsors, i.e., outside India. Further, there are similarities between the agrochemical and pharmaceutical sectors and hence, provisions shall also apply to the activities undertaken by the applicant with respect to agrochemical sector. 13. The State jurisdiction Officer viz. the Assistant Commissioner (ST), Oragadam Assessment Circle in his remarks has stated that the Applicant has compared notification 4/2019 dated :30.09.2019 with the business activity done by them in above Point No .B and has requested to p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and recognized as a Scientific and Research-Organisation by Department of Scientific and Industrial Research, Ministry of Science and Technology, New Delhi. Further they are also recognized by the Ministry of Finance under Section 35 (i) (ii) as an institution engaged in scientific research entitled to exemption under Section 10 (21) of the Income Tax Act, 1961. The main object of the society is to carry out research under laboratory and field conditions, non-clinical health and environmental safety studies among others. ' 16.3. When the members enquired as to whether they import any equipment or other materials, chemicals etc., without payment of duties/taxes, the AR replied that they carry out import of goods in relation to research and development under exemption vide Customs Notification No. 51/96 - Customs dated 23.07.1996 and they undertook to provide sample copies of the import documents to the authorities for advance ruling within a weeks' time. 16.4. The members observed that while the R&D activities that were carried out by them is in the nature of goods/materials relating to 'Agro Chemical Sector', how is it that they relate their activities to 'Pharmaceutical Sector'? ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g Agrochemical and Pharmaceutical sectors. The AR reiterated the submissions made in the previous personal hearing and in the additional submissions made by them. 17. DISCUSSION AND FINDINGS: 17.1. We have carefully considered the submissions made by the applicant in the Advance Ruling application, the submissions made during the personal hearing dated 12.01.2024, the additional submissions filed in pursuant to the above mentioned Personal hearing, vide letter dated 30.01.2024 and the submissions made during the personal hearing conducted on 26.03.2024. 17.2. As observed from the facts of the case put forth by the Applicant, the Applicant undertakes testing for the products of their clients (hereinafter referred to as 'sponsors'), and the Applicant provides the test results in the form of a report. Applicant has a standard practice to execute an agreement/document with the sponsor(s). The sponsor makes available a certain quantity of material (hereinafter referred to as the "test item") based on the agreement pursuant to which the research, development, testing and analysis will be carried out and methodologies adopted for the research, development and testing are well documente ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this Advance Ruling on the applicability of the notification to specified services provided by the applicant in relation to 'Agrochemical sector'. 17.6. Under the interpretation of law by the Applicant, they have stated that Section 13 (3) of the IGST Act prescribes the place of supply where the service relates to goods which have to be made physically available to the supplier of service. In the present case, the samples with respect to which the activities of testing, analytical studies, clinical trials are performed are physically made available by the sponsors in India, i.e., the taxable territory. In such cases, place of supply shall be deemed to be the location where the services are actually performed. 17.7. The Applicant has also stated that, as per section 13 (13) of the IGST Act, 2017, the Government may notify any description of services or circumstances under wherein the place of supply shall be the place of effective use and enjoyment of a service. Accordingly as per the Notification No. 04/2019 - Integrated lax dated 30 September 2019, place of supply for the Supply of research and development services related to 'Pharmaceutical sector' as specified in Column (2) a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the service. Therefore, it would not be incorrect to conclude that for the same set of research and development services provided in respect of 'Agro-chemical sector', the same principles of determining place of supply and consequential taxability should be applied. 17.11. The applicant reiterate their stand by explaining the nexus between the agro-chemical and pharmaceutical sectors, and that both Pharmaceuticals and Agro chemical products undergo a similar research, development and testing process. Indeed, both are chemical compounds that can have adverse effects and if misused, will have detrimental effects on human health and/or the environment. As per the scope of document No. 1 of OECD principles of GLP as revised dated 1997 (ENV/MC/CHEM(98)17), "Principles of Good Laboratory Practice (GLP) should be applied to the non-clinical safety testing of test items contained in pharmaceutical products, pesticide products, cosmetic products, veterinary drugs as well as food additives, feed additives, and industrial chemicals. These test items are frequently synthetic chemicals, but may be of natural or biological origin and in some circumstances, may be living organisms. The purpose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ient of service, i.e., the sponsors located outside India. 17.13. With the above back drop, the Applicant is before us seeking Advance ruling on the Query "Whether Notification No. 04/2019-Integrated Tax, issued dated 3O'h September 2019 shall be applicable on the services supplied by the Applicant, i.e., research and development services provided in relation to agrochemical sector? 17.14. The Applicant also filed copies of agreement entered into with various sponsors available at non-taxable territory as well as taxable territory as follows vide paper book dated 25.03.2024 List of Agreements filed by the Applicant Table-1 SI. No P.No of the Typed Set Service Recipient Country Date of Contract Agreement is for the purpose/ Nature of Service 1 3 Malaria Consortium London, U.K Contract no 16.05.2023 Provision of Laboratory service with regard to alpha-cypermethrin 2 28 UNOPS Cambodia Purchase Order date 24/04/2021 Purchase Order for quality control- testing services of LLIN 3 30 Cinemonics Kenya Work Order date 15.03.2024 Work Order for quality control testing services of LLIN (Long Lasting Insecticidal Nets) 4 33 Fujian Yamei Industry &Trade ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce/feedback on sample compliance with reference/ standards. 18.2. As observed from the Service description and scope of work, the service provider shall receive and store one thousand (1000) samples of BPO nets (30 cm x 30cm each) cut out from two hundred (200) nets according to standard protocols. 18.3. The service provider shall determine the alpha-cypermethrin active ingredient content of pooled samples of each net in grams per kilogram and mg/M2 of net according to the test method CIPAC 454/LN/M/3.2 (Hand Book M, p41) and the service provider shall determine the BPO active ingredient content of pooled samples of each net in g/kg and mg/M2 of net according to the test method CIPAC extension of 33/LN/M/3 (HandBook N, p112). 18.4. As observed from the description and scope of work as stated above, it is inferred that the Applicant has to analyse the test sample, i.e., in this case, the Mosquito net, received from the service recipient and determine the weight in grams of the alpha-cypermethrin active ingredient content in one kilogram of the Mosquito net (test sample) and weight in milligram of the same in cm square meter of the Mosquito net (test sample) and similarly, has to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he IGST Act, prescribed that the place of supply shall be the location where the services are actually performed, relating to services supplied in respect of goods which are required to be made physically available by the recipient of services to the supplier of services, or to a person acting on behalf of the supplier of services in order to provide the services. 18.10. it is also pertinent to notice that, earlier the Applicant themselves were of the opinion that the place of supply of service rendered by them falls under Section 13 (3) of the Act, i.e., where services are actually performed and discharged the tax liability accordingly. Post the issue of the Notification 4/2019, by the Central Government, the applicant has claimed that the activities undertaken by the applicant are exactly the same as listed out in Notification No. 04/2019 - Integrated Tax, where the place of effective use and enjoyment is the location of the sponsors, i.e., outside India. 18.11. However, a plain reading of the Notification No. 04/2019-Integrated Tax dated 30.09.2019, reveals that the said Notification is applicable to research and development services related to 'Pharmaceutical sector' only, as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st and effective drug development. 7 Stability Studies Stability studies are conducted to support formulation, development, safety and efficacy of a new drug. It is also done to ascertain the quality and shelf life of the drug in their intended packaging configuration. 8 Bio-equivalence and Bio-availability Studies Bio-equivalence is a term in pharmacokinetics used to assess the expected in vivo biological equivalence of two proprietary preparations of a drug. If two products are said to be bioequivalent it means that they would be expected to be, for all intents and purposes, the same. Bio-availability is a measurement of the rate and extent to which a therapeutically active chemical is absorbed from a drug product into the systemic circulation and becomes available at the site of action. 9 Clinical trials The drugs that are developed for human consumption would undergo human testing to confirm its utility and safety before being registered for marketing. The clinical trials help in collection of information related to drugs profile in human body such as absorption, distribution, metabolism, excretion and interaction. It allows choice of safe dosage. 10 Bio analytica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Applicant has stated that the intention of the law was to tax such services at the place of effective use and enjoyment of the service and pleaded that it would not be incorrect to conclude that the same set of research and development services provided in respect of agro chemical sector should also be eligible for consideration for the purpose of determining place of supply and consequent taxability. With regard to the above, we are of the view that the Central Government is categorical, in notifying the services in relation to the Pharmaceutical Sector only, vide Notification 4/2019. Such, power of issue of Notification to notify any description of services or circumstances in which the place of supply shall be the place of effective use and enjoyment of a service, lies with the Government, in terms of Section 13 (13) of the IGST Act, which is reproduced below for ease of reference: (13) In order to prevent double taxation or non-taxation of the supply of a service, or for the uniform application of rules, the Government shall have the power to notify any description of services or circumstances in which the place of supply shall be the place of effective use and enjoyment o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Good Laboratory Practice (GLP) Compliance Monitoring Authority (NGCMA). Further, in our view, in order to ensure accuracy of the test results, a Good Laboratory shall maintain the standardization of chemical solutions involved, Calibration of instruments with standardized solutions and the personnel concerned shall be trained and expertise for the analytical techniques as well as in operating the sophisticated instruments and equipment. The Government of India by recognizing the need' to have Good Laboratory Practice (GLP) system and implemented the GLP, by following principles evolved by Organization for Economic Co-operation and Development (OECD) and the purpose of the GLP Certification is for "Capacity Building, Infrastructure development as per the Government of India, Department of Science and technology". Hence, the Applicants claim that "as they are recognized by the National Good Laboratory Practice (GLP) ; Compliance Monitoring Authority (NGCMA) and they also fall within the Scop; of the Notification No. 04/2019-Integrated Tax is untenable, as the NGCMA is a quality system, of management controls for research laboratories and organizations to ensure the uniformity, consis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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