Bond quantum under Advance Authorization and EPCG excludes interest; interest and charges payable on default per bond condition. Bond and bank guarantee amounts under Advance Authorization and EPCG must equal only the duty ordinarily leviable on the goods but for the exemption; interest (simple or compound) is not included in calculating bond/BG quantum because it is penal and arises only on default. Bonds/BGs must, however, include a condition that interest and other applicable charges will be payable by the authorization holder in case of non compliance with scheme conditions.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Bond quantum under Advance Authorization and EPCG excludes interest; interest and charges payable on default per bond condition.
Bond and bank guarantee amounts under Advance Authorization and EPCG must equal only the duty ordinarily leviable on the goods but for the exemption; interest (simple or compound) is not included in calculating bond/BG quantum because it is penal and arises only on default. Bonds/BGs must, however, include a condition that interest and other applicable charges will be payable by the authorization holder in case of non compliance with scheme conditions.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
TaxTMI 
