Subject : Central Excise - Furnishing of security/surety with B-8 Bond - Clarification regarding -
I am directed to draw your attention to Board's Circular No. 284/118/96-CX dated 31.12.96 as modified by Board's Circular No. 304/20/97-CX dated 18.3.97, whereas instructions were issued, inter-alia, that in case where bonds have to be furnished under rule 13 and 14, the bonds may be taken without security/surety in certain categories of exporters and subject to such conditions as are specified in Para (3) of the said Circular. A doubt has arisen whether B-8 bond to be furnished under rule 13(1)(b) read with Notification No. 47/94-CE(NT) dated 22.9.94 (as amended), should be backed by security/surety or not.
2. The board has examined the matter. It may be noticed that Circular No. 284/118/96-CX dated 31.12.96 covers entire rule 13 and 14. Notification No. 47/94-CE(NT) dated 22.9.94 (as amended) has been issued to cover the situation as prescribed under rule 13(1)(b). Chapter X procedure is to be followed for the movement of excisable goods to be used in export goods. In this connection, the exporter has to furnish B-8 bond. Since the entire procedure relates to export and is prescribed under rule 13, the Board's instructions contained in Para (3) of the aforesaid Circular will squarely apply on them.
3. Accordingly, it is clarified that the exporters who fall in the category specified in Para (3) of the Circular No. 284/118/96-CX dated 31.12.96 (as modified) and also satisfy the conditions specified therein, may be allowed to furnish bonds (including B-8 bond) without security or surety for the purposes of Notification No. 47/94-CE(NT) dated 22.9.94 (as amended).