CONTINUITY BOND VALIDITY UNDER EXCISE

[Rajeev Khulbe]

GOOD MORNING TO ALL EXPERT,

I AM HARE TO KNOW AGAIN GET YOUR VALUABLE REPLIES.

SIR I WANT TO KNOW THAT WHAT IS THE VALIDITY OF CONTINUITY BOND UNDER EXCISE.

[Rajagopalan Ranganathan]

Sir,

A bond executed under Central Excise Law or rules made therunder will be valid for the period for which it is executed. On expiry of the bond you have to execute a fresh bond.

[KASTURI SETHI]

I am also of the same view as expressed by Sh. Ranganathan, Sir.

[Ganeshan Kalyani]

Sir I am in line with Sri Rajagopalan Sir and Sri Kasturi Sir. Thanks.

[AJAY KUMAR]

Sir,

Continuity Bonds are normally found in Customs laws. In Central Excise laws, it is not found. though there have been

instances where the same is required in terms of Manufacturers coming under the purview of CUstoms (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable goods) Rules, 1996. However, there is no prescribed forms in Central Excise Rules . the forms prescribed in Customs laws may be followed in such cases

AI Summary

Continuity bond validity: bonds are effective only for their stipulated term; a fresh bond is required on expiry. A bond executed under Central Excise law is effective only for the period for which it is executed and must be renewed by executing a fresh bond on expiry; continuity bonds are not standard in Central Excise and, where needed in connection with Customs-linked concessions, Customs-prescribed forms have been used since Central Excise Rules do not specify bond forms.