Export-related service credit is admissible where the seller retains ownership and transit risk under Delivered Duty Paid terms.

CENVAT credit is admissible on warehousing, handling, courier and transportation services used to export goods where the sale is on Delivered Duty Paid terms and the seller retains ownership and transit risk until delivery at the foreign buyer's premises. The circular on place of removal applies only when the seller does not reserve the right of disposal, which was not the factual position here. Because the freight formed part of the price and the export delivery conditions were satisfied, the export-related services qualified for credit, and the Revenue's challenge failed.

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Issues: Whether CENVAT credit was admissible on service tax paid for warehousing, handling, courier and transportation services used for goods exported outside India where the seller retained ownership till delivery at the destination.

Analysis: The appellant's goods were sold on Delivered Duty Paid basis, and the ownership and risk in the goods remained with the seller until delivery at the foreign buyer's premises. The earlier circular on place of removal was applied only where the seller does not reserve the right of disposal, which was not the factual position here. The conditions recognised for admissibility of credit on export-related transport services were satisfied, namely continued ownership with the seller, assumption of transit risk by the seller, and freight forming part of the price. The cited precedent supported credit eligibility on these facts.

Conclusion: CENVAT credit was admissible and the Revenue's challenge failed.

Ratio Decidendi: Where exported goods are supplied on Delivered Duty Paid basis and the seller retains ownership and transit risk until delivery at the foreign destination, services used for such delivery qualify for CENVAT credit.

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