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

Reversal of cenvat credit required when rented capital goods are re-exported without intent to return, unless returned within prescribed period.
Where rented capital goods on which Cenvat credit was availed are re-exported and cease to be in the taxpayer's possession, reversal of the credit is required; if the goods are re-exported with the intention and plan to re-import within the prescribed period and are back within that period, reversal may not be necessary.