Bank Guarantee For Export Promotion Schemes - Relaxation on Penal Clause - CBEC Clarifies
AS per Circular No. 58/2004 - Cus dated 21.10.2004, exemption from Bank Guarantee will not be available in case the licence holder has been penalized under the provisions of Customs Act, 1962, the Central Excise Act, 1944, the Foreign Exchange Management Act (FEMA),1999 or the Foreign Trade (Development and Regulation) Act, 1992 during the previous three Financial years.
Requests are received from importers for exemption from Bank Guarantee on the ground that penalty imposed on them was on account of offences which were technical in nature. It has been suggested that exemption from Bank Guarantee may not be denied in cases of technical offences. [Please see -04.11.2010]
Board has now clarified that offences other than the following would result in denial of the benefit of exemption from bank guarantee.
++ Cases of duty evasion involving mis-declaration / mis-statement/collusion / willful suppression / fraudulent intent whether or not extended period for issue of Show Cause Notice (SCN) has been invoked.
++ Cases of mis-declaration and/or clandestine/unauthorized removal of excisable / import / export goods warranting confiscation of said goods.
++ Cases of mis-declaration / mis-statement / collusion / willful suppression / fraudulent intent aimed at availing CENVAT credit, rebate, refund, drawback, benefits under export promotion/reward schemes.
++ Cases wherein Customs/Excise duties and Service Tax has been collected but not deposited with the exchequer.
++ Cases of non-registration with the Department with intent to evade payment of duty / tax.
In order to verify whether the Authorization holder meets the above criteria, he may be asked to furnish an affidavit stating whether any case(s) involving misdeclaration, suppression etc. as mentioned above have been booked against him during the previous three Financial years under the provisions of the Custom Act, Central Excise Act, the Foreign Exchange Management Act (FEMA), the Foreign Trade (Development and Regulation) Act, and the Service Tax (Finance Act, 1994). In case the details reveal violation(s) of the type mentioned above under the provisions of the above mentioned Acts then the benefit of Circular No. 58/2004-Cus. will not be extended. The Commissioners to ensure that some of the affidavits furnished are cross checked randomly with the field formations for their veracity.
CBEC Circular No. 6/2011 – Cus; Dated: January 18, 2011