re-export of rented capital goods on which capital goods credit availed

[mohammedshamim shaikh]

Imported the capital goods from sister concern (i.e. no foreign currency paid) on rental basis on payment of appropriate customs duties and availed applicable cenvat credit thereon. Re-exported the said goods without foreign proceeds with the permission of RBI.

Pl guide whether cenvat credit availed are required to be reversed?

AI Summary

Re-export of Rented Capital Goods: Cenvat Credit Reversal Required if No Re-import Planned Under Section 5A A discussion on the re-export of rented capital goods, on which Cenvat credit was availed, involves queries about whether this credit needs to be reversed. The goods were imported from a sister concern without foreign currency exchange, duties were paid, and re-export was done with RBI's permission. Responses suggest that if the goods are not intended to be re-imported, the credit should be reversed. If re-import is planned within a prescribed time, reversal may not be necessary. The original poster clarifies the goods were rented, re-exported after work completion, and no export incentives were claimed.