WELLQUEST Vs. COMMISSIONER OF SERVICE TAX, MUMBAI-I

JUDGEMENT

(1.) THE appellant are in appeal along with an application for stay of the dues adjudged in the impugned order.

(2.) The appellant are engaged in the activity of clinical testing of drugs and formulations service to various companies engaged in developing of drugs. The said activity is covered as per the explanation given to Section 65(106) of the Finance Act, 1994 w.e.f. 1 -5 -2006 and the appellant are covered therein. Thereafter, they are paying Service Tax on their activity regularly. But the issue involved in this case is whether prior to insertion of the explanation in the Finance Act, 1994 on 1 -5 -2006 the appellant was liable to pay Service Tax or not? Admittedly in this case, the period involved is 1 -7 -2003 to 31 -3 -2006.

(3.) WE have seen that, in the case of B.A. Research India Ltd. v. Commissioner of Service Tax, Ahmedabad reported in : 2010(18) S.T.R. 604 (Tribunal) this issue came up before this Tribunal and this Tribunal held that, prior to insertion of the explanation in the Finance Act, 1994 on 1 -5 -2006 the activity undertaken by the appellant are not liable to Service Tax. The same view was followed by this Tribunal in the case of Synchron Research Services P. Ltd. v. Commissioner of Service Tax, Ahmedabad reported in : 2011 (24) S.T.R. 654 (Tribunal). Therefore, we find that the issue is no more res Integra and accordingly, we set aside the impugned order and allow the appeal. The appeal as well as the stay application are disposed of in the above manner.