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What is "general bond"?

CA. Abhishek K. Pandey (Manager (Advance)) (901 Points)

03 April 2012

What is general bond u/s 59(2)??????

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CA SURENDRA KUMAR RAKHECHA (Practising CA at Surat) (26263 Points)
Replied 04 April 2012

In its simplest meaning :

General Bond means a written document by which a person agrees to indemnify the other party if terms and conditions of an agreement is not fulfilled.

It is one type of security which is provided to the another party.

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Example of General Bond : When goods are removed for the purpose of exports

Annexure-16

.

FORM B-1

.

GENERAL BOND (SURETY/SECURITY)

General Bond with surety/security for removal for export of excisable goods

without payment of duty for export

[I/We ...................................of............................ hereinafter called "the

obligor(s)" and ……………................. of………................hereinafter

called "the surety(ies)"/ am/are held and firmly bound to the President

of India (hereinafter called the "President") in the sum

of...........................rupees to be paid to the President for which payment

will and truly to be made/ I/We jointly and severally bind

myself/ourselves and my/our respective heirs, executors/

administrators, legal representatives/successors and assigns by these

presents] :

.

I/We.................of....................hereinafter called "obligor(s)"I/am/are held

and firmly bound to the President of India (hereinafter called "the

President") in the sum of......................rupees to be paid to the President

of India for which payment will and truly to be made, I/We jointly and

severally bind myself/ourselves and my/our respective heirs/ executors/

administrators/ legal representatives/successors and assigns by these

presents];

Dated this...................day of....................

WHEREAS the above bounden obligor has been permitted to remove

from time to time the excisable goods from his registered

warehouse/registered factory at ...........for export to foreign countries

without payment of duty;

AND WHEREAS the Commissioner has required the obligor to deposit as

For

security for the amount of this bond/ the sum of

............................................ rupees in cash (the securities as hereinafter

mentioned of a total value of ............................................. rupees

endorsed in favour of the President and accepted on his behalf by the

Assistant Commissioner of Central Excise or Deputy Commissioner of

Central Excise, namely, ............................. and whereas the obligor has

furnished such guarantee by depositing with the Commissioner the

cash/securities as aforementioned;

The condition of this bond is that if the obligor and his representative

shall observe all the provisions of the Central Excise (No.2) Rules, 2001

and all such amendments thereto as may be issued from time to time

to be observed in respect of export of excisable goods to a foreign

country or manufacture of goods and export thereof under rule 19;

And whereas the obligor(s) has /have furnished such guarantee by

depositing with the Assistant Commissioner of Central Excise or the

Deputy Commissioner of Central Excise the cash/securities/bank

guarantee as aforementioned.

And shall observe all the provisions of the Central Excise (No.2) Rules,

2001 or the provisions of other rules made under the Central Excise Act,

1944 (1 of 1944) and all such amendments thereto, as may be issued

from time to time so far as they relate to the export of excisable goods

without payment of the whole or part of the duty;

And if the relevant and specific goods are duly exported to destination

within such time as specified in the Central Excise (No.2) Rules, 2001 or

notifications issued thereunder and/or if all dues whether excise duty or

other lawful charges, which shall be demandable on the goods

removed by the obligor(s) without payment of the whole or part of the

duty and transported from the place of procurement for export as

surety bond only

shown by the Central Excise records, be duly paid into the treasury to

the account of the Commissioner of Central Excise along with such

interest as may be specified in the said rules,/notification within ten

days of the date of demand thereof being made in writing by the said

Officer of Central Excise, this obligation shall be void.

OTHERWISE and on breach or failure in the performance of any part of

this condition, the same shall be in full force and virtue:

Provided always that the liability of the surety hereunder shall not be

impaired or discharged by reason of any time being granted or any

forbearance, act or omission of the Government (whether with or

without the knowledge or the consent of the surety) in respect of or in

relation to the obligation and condition to be performed or discharged

by the obligor(s) nor shall it be necessary to sue the obligor(s) before

suing the surety for amounts hereunder;

AND the President shall, at his option, be competent to make good all

the loss and damages from the amount of the security deposit or by

endorsing his rights under the above-written bond or the both;

I/We further declare that this bond is given under the orders of the

Central Government for the performance of enact in which the public

are interested.

In these presents the words imposing singular only shall also include the

plural and vice versa where the context so requires;

IN THE WITNESS THEREOF these presents have been signed the day

hereinbefore written by the obligor(s) and the surety(ies).

Signature(s) of obligor(s).

Date:

Place:

Witnesses

(3) Name and Address Occupation

(4) Name and Address Occupation

Date

Place

Signature(s) of surety (ies).

Date:

Place:

Witnesses

(1) Name and Address Occupation

(2) Name and Address Occupation

Accepted by me this.............................day of

.........................(month).................……..(year)

………………………………..of Central Excise, (Designation)

for and on behalf of the President of India.