Mukesh Pareek (service) 24 October 2009

Concessional rate of duty

Dear All,

I Want to know that we had furnish B-1 bond & give security 25% to excise dept. for procurement of goods @ concessional rate of duty

When we had furnish this B-1 Bond & 25 % security that time our product having price is Rs.20 per nos.

but now product price are changed and our vendor tell us that he require new procurement application from our side with current rate

my question is that ,if we calculate everything on that time present price then why we require to furnish new new B-1 bond & get approval from excise dept.every time when rates are changed.

Pls.reply

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1 Replies

ca prabhakar (Proprietor) 29 November 2009

In case you have submitted Bond B-1, you are not require to submit it again on change in rate of products.

Bond B-1 is rquire to submit for export of goods without payment of duty at beginning of the year, an assesee is require to submit the same to ensure that if goods were removed without payment of duty but not exported department can collect the duty form BG/security.

Once you submit the export documents to excise department, your liability shall dispose off.

You are not require to submit Bond B-1 every time on change in rtes.

caprabhakargupta@rediffmail.com