Recovery of duty on failure on the part of the assessee to execute Bank Guarantee within the period stipulated by the Courts - Central Excise - 232/248/88-CX.7

Recovery of duty on failure on the part of the assessee to execute Bank Guarantee within the period stipulated by the Courts F. No. 232/248/88-CX.7 Dated 18-5-1989 Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Recovery of duty on failure on the part of the assessee to execute Bank Guarantee within the period stipulated by the Courts. It has come to the notice of the Board that in a case an assessee obtained a stay of the recovery of duty from the Supreme Court of India subject to the condition that the assessee should furnish Bank Guarantee for the duty involved within four weeks of the clearance or demand as the case may be. The assessee failed to execute the bank guarantee within the stipulated period. However, the officers of the Department instead of insisting on recovery of duty, limited their actions to issue reminders to the assessee to execute the bank guarantee. There is no need to issue reminders to the assessee to execute a bank guarantee after the stipulated period for executing the guarantee has expired. Duty as leviable should have been recovered. This case is brought to your notice for information and guidance so that in similar cases duty is promptly recovered on the failure of the assessee to execute bank guarantee within the period stipulated by the Court.