TMI BlogBonds under Central ExciseX X X X Extracts X X X X X X X X Extracts X X X X ..... ): for export of goods without payment of duty under Rule 19 - · Generally such Bond is executed when export is through merchant-exporter. · Export Bond should be accepted within 24 hours or the next working day by the DC/AC of Central Excise or Maritime Commissioner or any other officer authorized by the board in this behalf. Complete address of bond accepting authority should be mention in A.R.E.-1 Form for admission of proof of export. · The bond amount should be sufficient to cover the duty liability. · B-1 bond can be with surety or security, such as:- Ø Exporters i.e. Super Star Trading House, Star Trading House, Other (status holder) export houses, Exporters registered with Export Promotion Council and Registered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... neral Bond: for due dispatch of excisable goods removed for rewarehousing and export therefrom without payment of duty - · The amount of such bond should be equal to the duty liability. · The B-3 bond should be backed/ furnished with 25% security of the bond amount. 4. B-5A Bond: for due arrival and rewarehousing of excisable goods removed from a warehouse in India to a factory in SEEPZ [Notification No.146/ 89-CE]. 5. B-8 General Bond (Surety/ Security): for obtaining goods at Nil or concessional rate of duty under CE Rules - · Earlier B-8 bond form may be used with suitable modifications. · The amount of bond should be equal to the duty amount of 1 month's estimated consumption of goods for industrial purpos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e value of the bond in the form of bank guarantee or cash deposit or any other mode of security may be accepted in lieu of surety. Types of bonds: - Bonds are of two types i.e. either surety bond or security bond. 1. Surety Bond - Under Surety bond, another person stands as surety to guarantee the performance on the part of obligor. · Surety bond should be signed by both the obligor and surety. · Since Surety bonds are covered under the provisions of Contract Act, the liability of the surety is co-extensive with that of the principal debtor. This means that department is entitled to recover the dues either from the obligor or from the surety. · A partner or a director can also stand as surety in their individual cap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conditions as laid down in clause (iii) of Rule 274 (iv) of G.F.R. and these conditions are: - Ø Deposit receipt shall be made in the name of the pledgee otherwise bank shall certify on it that the deposit can be withdrawn only on demand or with the sanction of the pledgee. Ø Only the larger scheduled banks are to be considered as recognized banks approved by Government. Ø The responsibility of the pledgee in connection with the deposit and the interest cease when he issues final withdrawal order to the depositor and sends intimation to the bank that he has done so. · Interest on such securities will accrue to person making such deposits but in case of cash deposits no interest is payable. In respect of other deposits arrangeme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in favour of and in the name of the president of India. 2. Bonds should be executed on a non-judicial stamp paper of the respective State government in which the registered persons business is situated. 3. if adhesive stamps are affixed to any instrument chargeable to duty, the stamps shall be cancelled, by drawing two lines across or by signing on the stamp or in other effectual manner, so that it cannot be used again. 4. The prescribed wordings of the bond form must be copied out on a non- judicial stamp paper of the appropriate amount except where arrangement can be made for embossing printed forms. 5. The bond shall be signed by the person authorized by board of directors in case of a company or by any partner in case of reg ..... X X X X Extracts X X X X X X X X Extracts X X X X
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