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2015 (9) TMI 204 - HC - Central ExciseRenewal/Encashment of Bank Guarantee – Finalization of Contract – Petitioner addressed letter to Respondent No.1 stating that since everything at Petitioner's end was complied with, assessment was required to be completed within sixty days and as such, requested for finalization of contract and further requested that renewal of bank guarantees may not be insisted upon – However, Respondent No.1 addressed letter to Respondent No.2 for renewal of bank guarantees – Held that:- Constitutional Bench of Apex Court in case of Collector of C. Ex, Vadodara v. Dhiren Chemical Industries [2001 (12) TMI 3 - SUPREME COURT OF INDIA] and Steel Authority of India v. Collector of Customs, Bombay [1999 (10) TMI 67 - SUPREME COURT OF INDIA] held that circulars issued by Central Board of Excise and Customs are binding on all sub-ordinate authorities – Circular clearly provides that if everything which is required to be done at end of concerned party is done and inspite of that if assessment is not completed within period of six months, authorities will not insist upon renewal of bank guarantees –Aforesaid narration clearly shows that in Petitioner had done everything which is required to be done, even after that Respondent No.1 has not taken any steps for completing assessment –Therefore Petitioner cannot be penalized for non-compliance of direction and is entitled to benefit of circular issued by CBEC – Respondent Nos.1 and 2 directed not to renew/encash bank guarantees till finalization of project – Decided in favour of Appellant.
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