Requirement of Bank Guarantee by EOU - Central Excise Practice Manual (OLD) - Central Excise

Requirement of Bank Guarantee by EOU Since goods being sent out in DTA for job work are duty free goods, in order to secure the interest of revenue, it has been provided in the CBEC Circular that in case the EOU send the raw material for job work without any processing, the unit would be required to furnish 100% bank guarantee to cover the duty forgone on the goods being sent for job work. In case goods are sent out for job work after carrying out some processing, the unit shall be required to furnish bank guarantee equivalent to the 50% of the duty on the goods being sent for job work.