ITC BOND U/S 143

This query is : Resolved

Bikash Ranjan Ojha (Querist)
Follow

02 June 2010 Can anyone say what is an ITC Bond? It is said to under provisions of Sec 143 of customs act. However this section doesn't mention anything named ITC bond. It only discusses about a bond.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
Follow

09 June 2010 DEAR SIR,

YOU ARE REGHT, PLEASE NOTED

CUSTOM ACT, 1962
SECTION 143. POWER TO ALLOW IMPORT OR EXPORT ON EXECUTION OF BONDS IN CERTAIN CASES. – (1) WHERE THIS ACT OR ANY OTHER LAW REQUIRES ANYTHING TO BE DONE BEFORE A PERSON CAN IMPORT OR EXPORT ANY GOODS OR CLEAR ANY GOODS FROM THE CONTROL OF OFFICERS OF CUSTOMS AND THE [ASSISTANT COMMISSIONER OF CUSTOMS OR DEPUTY COMMISSIONER OF CUSTOMS] IS SATISFIED THAT HAVING REGARD TO THE CIRCUMSTANCES OF THE CASE, SUCH THING CANNOT BE DONE BEFORE SUCH IMPORT, EXPORT OR CLEARANCE WITHOUT DETRIMENT TO THAT PERSON, THE [ASSISTANT COMMISSIONER OF CUSTOMS OR DEPUTY COMMISSIONER OF CUSTOMS] MAY, NOTWITHSTANDING ANYTHING CONTAINED IN THIS ACT OR SUCH OTHER LAW, GRANT LEAVE FOR SUCH IMPORT, EXPORT OR CLEARANCE ON THE PERSON EXECUTING A BOND IN SUCH AMOUNT, WITH SUCH SURETY OR SECURITY AND SUBJECT TO SUCH CONDITIONS AS THE [ASSISTANT COMMISSIONER OF CUSTOMS OR DEPUTY COMMISSIONER OF CUSTOMS] APPROVES, FOR THE DOING OF THAT THING WITHIN SUCH TIME AFTER THE IMPORT, EXPORT OR CLEARANCE AS MAY BE SPECIFIED IN THE BOND.
(2) IF THE THING IS DONE WITHIN THE TIME SPECIFIED IN THE BOND, THE [ASSISTANT COMMISSIONER OF CUSTOMS OR DEPUTY COMMISSIONER OF CUSTOMS] SHALL CANCEL THE BOND AS DISCHARGED IN FULL AND SHALL, ON DEMAND, DELIVER IT, SO CANCELLED, TO THE PERSON WHO HAS EXECUTED OR WHO IS ENTITLED TO RECEIVE IT; AND IN SUCH A CASE THAT PERSON SHALL NOT BE LIABLE TO ANY PENALTY PROVIDED IN THIS ACT OR, AS THE CASE MAY BE, IN SUCH OTHER LAW FOR THE CONTRAVENTION OF THE PROVISIONS THEREOF RELATING TO THE DOING OF THAT THING.
(3) IF THE THING IS NOT DONE WITHIN THE TIME SPECIFIED IN THE BOND, THE [ASSISTANT COMMISSIONER OF CUSTOMS OR DEPUTY COMMISSIONER OF CUSTOMS] SHALL, WITHOUT PREJUDICE TO ANY OTHER ACTION THAT MAY BE TAKEN UNDER THIS ACT OR ANY OTHER LAW FOR THE TIME BEING IN FORCE, BE ENTITLED TO PROCEED UPON THE BOND IN ACCORDANCE WITH LAW.

SECTION [143A. Duty deferment. – (1) When any material is imported under an import licence belonging to the category of Advance Licence granted under the [Imports and Exports (Control) Act, 1947 (18 of 1947)], subject to an obligation to export the goods as are specified in the said Licence within the period specified therein, the [Assistant Commissioner of Customs or Deputy Commissioner of Customs] may, notwithstanding anything contained in this Act, permit clearance of such material without payment of duty leviable thereon.
(2) The permission for clearance without payment of duty under sub-section (1) shall be subject to the following conditions, that is to say -
(a) the duty payable on the material imported shall be adjusted against the drawback of duty payable under this Act or under any other law for the time being in force on the export of goods specified in the said Advance Licence; and
(b) where the duty is not so adjusted either for the reason that the goods are not exported within the period specified in the said Advance Licence, or within such extended period not exceeding six months as the [Assistant Commissioner of Customs or Deputy Commissioner of Customs] may, on sufficient cause being shown, allow, or for any other sufficient reason, the importer shall, notwithstanding anything contained in section 28, be liable to pay the amount of duty not so adjusted together with simple interest thereon at the rate of twelve per cent per annum from the date the said permission for clearance is given to the date of payment.
(3) While permitting clearance under sub-section (1), the [Assistant Commissioner of Customs or Deputy Commissioner of Customs] may require the importer to execute a bond with such surety or security as he thinks fit for complying with the conditions specified in sub-section (2).]

Message likes : 1 times