Cenvat credit on technical consultancy remained available where contractual supervision established use in developing exported technology.

Cenvat credit was admissible on Scientific and Technical Consultancy Service used to develop technology or know-how for export. Contractual rights to supervise and monitor the research and development activity established that the recipient used and consumed the input service. The fact that the service invoice and subsequent export carried the same date did not prove that the service had been exported without use. Accordingly, credit remained available for the consultancy service.

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Issues: Whether Cenvat credit was admissible on Scientific and Technical Consultancy Service used for development and export of technology/know-how.

Analysis: The identical issue had already been determined in the assessee's own earlier matters. The service was rendered over a period during which the assessee had contractual rights to supervise and monitor the research and development activity. Such participation constituted use and consumption of the input service. The fact that the service invoice and its subsequent export bore the same date did not establish that the service had been exported without use.

Conclusion: Cenvat credit on Scientific and Technical Consultancy Service was admissible to the assessee.

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