Format of bank guarantee to be taken from central excise assessees in case of clearances allowed in pursuance of orders of Court - Central Excise - 8/90-CX.6

Format of bank guarantee to be taken from central excise assessees in case of clearances allowed in pursuance of orders of Court Circular No. 8/90-CX.6 Dated 2-3-1990 [From F. No. 214/3/89-CX.6] Government of India Central Board of Excise Customs New Delhi Subject : Format of bank guarantee to be taken from central excise assessees in case of clearances allowed in pursuance of orders of Court. In view of the recommendations of the Public Accounts Committee in its 92nd Report and the 151st Report that bank guarantees filed for the differential duty in respect of goods cleared in pursuance of Court's orders should have the validity period till the final disposal of the Court's cases and that they should have a provision for enforcement immediately on vacation of the Court's stay order or the final decision of the writ petition whichever is earlier. A standard format for such bank guarantees has been devised in consultation with the Ministry of Law. The format of the bank guarantee duly vetted by the Ministry of Law is enclosed. 2. It has been decided that all bank guarantees accepted in pursuance of Court's orders should be in the enclosed format and that this should be brought into force with immediate effect. It is requested to bring this to the notice of the trade and the banks for compliance. GUARANTEE BOND We, ___________having its head office at_________________ do hereby guarantee the payment of Rs._________(Rupees __________) to the President of India acting through the Collector of Central Excise______________(hereinafter referred to as 'the Central Government) in the circumstances subject to condition noted below : - Whereas, in Civil Miscellaneous Petition No._______ of_________ In Civil Petition No.____________of Union of India and others, Hon'ble High Court of Judicature at __________ Mr. Hon'ble Justice _____________.and Mr. Hon'ble Justice _____________were pleased to pass an order on ____________to the effect that M/s. ______________ (hereinafter referred to as "the petitioner") be allowed to clear the excisable goods _______________ (give full description of the goods weight/quantity etc.) as per schedule annexured _________on the condition that the petitioner furnish Bond and/or furnishing a Bank guarantee for 100% of the differential duty claimed by the respondents to the satisfaction of the Collector of Central Excise __________before the clearing goods for home consumption AND WHEREAS THE said petitioners have requested us to furnish the required Bank guarantee to the satisfaction of the Collector of Central Excise _______to the President of India, hereafter called the central Government for a sum of Rs.___________(Rupees ___________) and accordingly we, do as primary obliger and not merely as surety, hereby irrevocably, unconditionally and absolutely guarantee and convenient with the Central Government represented by Collector of Central Excise________and/or his successor or successors in office that on vacation of interim stay or in the even of the decision adverse to the petitioners being given by the said court or dismissal of writ petition whichever is earlier, we would make the said payment to the Central Government on demand without demur notwithstanding that the petitioners are not called upon in the first instance to pay to the Government the said amount before calling upon us____________the said Bank to pay the said amount under this guarantee. AND FURTHER we hereby undertake and declare that this guarantee shall remain in force till disposal of the said petition and six months thereafter. It is hereby declared that any forbearance on the part of the Central Govemment of India or any other office shall not in any case may release us (the bank) or our successor in interest from the liabilities under these presents. And it is hereby farther declared that notwithstanding anything contained herein before the liability of the Bank is restricted to the said sum of Rs.__________________). It is further declared that this is an unconditional guarantee and the liabilities of us (the bank) created herein shall not be discharged due to any change in the constitution of the bank or the petitioner. It is further agreed and declared that any claim which we (the bank) may have against the petitioner shall be subject and subordinate to the prior payment and performance in full or all the obligations of us (the bank hereunder and we (the bank) will not without prior written consent of the Central Government, exercise any legal rights or remedies of any kind in respect of any such payment or performance so long as the obligation of us (the bank) hereunder remain outstanding regardless of insolvency or liquidation of the petitioner or otherwise or howsoever. SCHEDULE 1. Brief facts of dispute 2. Description of the excisable goods. 3. Sub-heading No. and rate of duty/Assessable value claimed by Department. 4. Sub-heading No. and rate of duty/Assessable claimed byassessee. 5. Differential duty involved. 6. Amount of Bank guarantee. 7. Amount of Bond.