Furnishing of Bank Guarantee as security - Regarding - Central Excise - 36/86-CX. 6

Furnishing of Bank Guarantee as security - Regarding Circular No. 36/86-CX. 6 Dated 23-9-1986 [From F. No. 214/06/85-CX. 6] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Furnishing of Bank Guarantee as security - Regarding. I am directed to refer to Board's Instructions dated 19-9-1984 (Circular No. 32/84-CX. 6) wherein it has been prescribed that a bank guarantee is one of the securities to be furnished against Central Excise bonds. However, subsequently under Board's letter F. No. 214/16/84-CX. 6, dated 9-11-1984 (Circular No. 40/84-CX. 6), it had inter alia been intimated that bank guarantee is one of the forms of sureties. These two apparently contradictory instructions had created confusion in the field as a result of which a number of references have been received by the Board. 2. The matter has since been examined in consultation with the Ministry of Law who have opined that a Bank Guarantee is a form of security. The advice of the Law Ministry has been accepted by the Board. As a result Board's Instructions issued under F. No. 214/16/84-CX. 6, dated 9-11-1984 may be treated as withdrawn.