No Service Tax on clinical trials of Imported Drugs: CESTAT

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has ruled that clinical trials of imported drugs do not attract service tax. The tribunal held that these trials are not considered a taxable service under Indian law. This decision provides significant relief to pharmaceutical companies engaged in clinical trials of imported drugs, as they will not be liable to pay service tax on such activities. The ruling also clarifies the tax treatment of clinical trials, which has been a contentious issue in the pharmaceutical industry. This decision is likely to encourage more clinical trials in India, benefiting the healthcare sector.