Securities / Bank Guarantees

Bank guarantee / security shall be required for the following reasons:

1. For covering excise duty on excisable goods stored at the manufacturer's premises (security/bank guarantee in such amount as the Director-General may require);

    

2. For securing payment of excise duty due (deferred payment) and for ensuring compliance with the Excise Act (bank guarantee in such amount as the Director-General may deem necessary);

    

3. For exportation of excisable goods on which duty has not been paid – to ensure that the goods are exported as directed;

    

4. Possession of a water still duly registered (Bank guarantee/Bond for the sum of Rs 10,000 per still shall be required).