Capital goods sent for repair out side India

[RAM SHARMA]

Dear Expert,We are registered manufacturer in central excise. We want to remove imported capital goods for repair and return basis out side india. We have received cenvat credit on that. What will be the central excise procedure for remove these capital goods.Thanks

[YAGAY andSUN]

Dear Ram,

Normal export procedure would be adopted for sending the capital goods for repair purpose. You would require GR-Waiver form from your Banker (Authorized Dealer) as this transaction would not involve any foreign remittance etc. On the export invoice/packing list/ARE-1/shipping bill/Bill of Lading you would clearly mention this tag line that "capital goods are for repair purpose only". One to one correlation of Capital Goods would be the substance of this transaction. Proof of export and re-import for the purpose of one to one correlation would be submitted to the jurisdictional central excise department.

On re-importation customs duty would be paid on the Invoice raised by the Job-worker for the work done and or on replacement of parts/components/inputs etc. The Exchange Control Copy of the Bill of Entry would be submitted to submitted with your Banker (Authorized Dealer).

Regards,

Team YAGAY and SUN

(Management and Indirect Tax Consultants)

[RAM SHARMA]

Whether any need to be cenvat reversed and make job work challan u/r 4(5)a.

Thanks

[YAGAY andSUN]

Dear Ram,

No there is no such requirement.

Regards,

TeamYAGAY and SUN

(Management and Indirect Tax Consultants)

[RAM SHARMA]

Thanks Sir,

AI Summary

Export for repair of capital goods: follow export procedure, keep one to one correlation, and pay customs duty on re import. Sending imported capital goods abroad for repair requires normal export procedure with a GR Waiver, export documents marked 'capital goods for repair purpose only,' and strict one to one correlation with proof of export and re import submitted to central excise; on re import customs duty is payable on the job worker's invoice and replacement parts, and the Exchange Control Copy of the Bill of Entry must be given to the authorised dealer, with no requirement to reverse cenvat credit or convert the movement into a job work challan.