B17 Bond renew lapse - Penalty??, Customs - Exim - SEZ

[Viny]

Hi,

I have a STPI unit registered 2 years ago as required I submitted B17 Bond, which was created for 1 year and expired in Dec 2010. Although I have given 3 years bank gaurantee while creating the bond, they granted it for one year only.

In meanwhile I have not done any imports till date and thus have not been required to pay any duties. But now that my B17 bond is lapsed, will I have to pay any penalty for non renewal of bond? Does it effect my STPI status in anyway? Kindly suggest.

Officers in the department has got to fullfill his march ending penalty collection target so I fear of becoming scape goat.

Thanks

Viny

Posts / Replies

[Ramaiah Swamy]

dear mr. viny,

 

1.  To my knowledge the B   17 bond should be valid till the expiry of intitial validity period of

     LoP.

2,  L o P is given by STPI authorities for a period of 5 years

3.  Even now you can  furnish a new B 17 bond

4.  Since you have not availed any duty exemption benefits  and there is no mala fide intention on your part,    non-renewal should not pose any problem

5.  Approach your customs / central excise authorities with new B 17 bond, explain the reason for delay in renewal and seek condonation.

With you all the best!!!

 

With regards,

 

Rangaswamy

 

[R.S. Mangal]

B17 bond is taken to debit 25% duty foregone of Capital goods procured and also duty foregone on raw material till the same is used and cleared from the unit, further it is also used to debit duty on export till proof of exports is submitted. In case u have neither got any duty free procurement or exports on which duty is involved, then you submit/renew the B 17 bond.

For further opinion full facts are required.