Systemic improvements regarding modification in the Bond (B-17) Execution process

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....ted 03rd February, 2021 To, All Pr. Chief Commissioners/ Chief Commissioners of Customs/ Customs (Prev.) All Pr. Chief Commissioners/ Chief Commissioners of Central Tax/ Central Excise All Pr. Commissioners/ Commissioners of Customs/ Customs (Prev.) All Pr. Commissioners/ Commissioners of Central Tax and Central Excise Madam/Sir, Subject: - Systemic improvements regarding modi....

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....urety bond has to be taken from such units. Subsequently, circular no. 42/98-Customs dated 19.06.1998 acknowledging the fact that some units were not able to organise prescribed individual/corporate surety equivalent to the bond amount, allowed such units to execute the bond coupled with a security amount. 3. CBIC vide circular no. 66/98-Customs dated 15.09.1998 further directed that the solven....

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....other than the EOU firm. This resulted in improper execution of B-17 Bond resulting in loss of Government revenue. 5. Matter has been examined in the Board. "Surety" is a person/individual who undertakes an obligation to pay a sum of money or to perform some duty or promise for another in the event that person (obligor) fails to act. A sole Proprietorship firm is not a legal entity distinct fro....