Bank Guarantee, Central Excise

[Girdhari Yadav]

Is this necessary to give a bank guarantee in auto renewal form for any type of bond.

Posts / Replies

[KASTURI SETHI]

Surety bond does not require Bank Guarantee. It is to be renewed before the date of expiry of the bond. Security bond requires Bank Guarantee. Without renewal of Bank Guarantee, Security Bond is incomplete. The department always keeps watch to protect revenue.

[MARIAPPAN GOVINDARAJAN]

Bank guarantee is for certain period. If the period expires the bank guarantee also expires. In auto renewal if the period of bank guarantee then fresh bank guarantee is to be given. It is my view.