Debonding by EOU/EHTP/STP Units

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..... your attention to Board's Circular No. 8/2004-Customs, dated 28-1-2004 on the above subject. whereunder it has been provided that EOUs against whom any show cause notice for demand of duty is pending may be allowed to be debonded on furnishing undertaking on stamp paper along with Bank Guarantee of 10% of the amount involved. . 2. Clarification has been sought as to whether 10% Bank Guarante .....

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..... ed by the department, Show Cause Notices on these issues are pending for adjudication even for other EOUs. Therefore, in all such cases where the Department has lost in the CESTAT and has preferred appeal to Apex Court, the amount involved in SCN issued on the same issue either in respect of the said unit or any other unit, will not be taken into consideration for computing 10% Bank Guarantee a .....

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..... e of debonding in terms of Circular 8/2004. The matter has been considered. The intention of the Circular 8/2004- Cus is to take 10% bank guarantee of the duty demanded at the time of debonding. Therefore, the duty paid earlier during the course of investigation can not be used to adjust the 10% guarantee required at the time of debonding. However, while calculating 10% of the amount involved .....

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