TMI Blog2021 (9) TMI 268X X X X Extracts X X X X X X X X Extracts X X X X ..... venue and the said Communication was issued relating to the Bank Guarantee for customers purposes. A provision for Auto Renewal was issued by the Reserve Bank of India in its Master Circular dated 01.07.2009. Similarly, the Central Board of Excise and Customs also issued a Circular dated 30.06.2010 based on the Reserve Bank of India Master Circular and the Circular issued by the Central Board of Excise and Customs, the respondents issued an impugned Communication dated 02.07.2014 directing the petitioners to opt for an Auto Renewal clause which became a requirement as per the Reserve Bank of India for the purpose of Bank Guarantee for customers purposes. This Court is of an opinion that Auto Renewal clause is a facility provided by the B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of India, Ministry of Finance on 17th March 2012 under Section 25(1) of the Customs Act, 1962. The Notification categorically states that 'In case of imports for a project for which certificate regarding Mega Power Project status issued by an officer not below the rank of Joint Secretary to the Government of India in the Ministry of Power is provisional, the importer furnishes a security in the form of a Fixed Deposit Receipt from any Scheduled Bank for a term of thirty six months or more in the name of the President of India for an amount equal to the duty of customs payable on such imports but for this exemption, to the Deputy Commissioner of Customs of Assistant Commissioner of Customs, as the case may be, at the time of importati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an opinion that it is aggrieved from and out of such Circular, they have to seek relief from the Reserve Bank of India and certainly not against the Customs Department. 4. The learned Senior Panel Counsel reiterated that the petitioners themselves in their letter has stated that they had accepted to get Auto Renewal clause duly included in the future Bank Guarantees. In another letter, the petitioners have stated that the Auto Renewal clause is acceptable, if the Banks accept the same. When the petitioners themselves accept the Auto Renewal facility provided by the Banks, pursuant to the Master Circular issued by the Reserve Bank of India, there is no reason to consider the relief as such sought for in the present writ petition. 5. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e had accepted to get Auto Renewal clause duly included in the future bank guarantees. We bring to your kind attention that we are having 19 lenders (various banks LIC) in our lending consortium, with Punjab National Bank, Large Corporate Branch New Delhi as leader of consortium. 8. In another letter dated 18.6.2014, the petitioners have again stated that if the Banks accepted the Auto Renewal clause, they have no objection for the same and the said portion of the letter is extracted hereunder: Under the above circumstances, we are currently not able to fulfil the requirement of the department with regard to auto renewal facility. We have taken up the matter with our banks and will continue to submit the bank guarantees as state ..... X X X X Extracts X X X X X X X X Extracts X X X X
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