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Informative

Expired Bank Guarantees Cannot be Sustained in Law: Kerala HC Dispels Customs’ Claim

Update / Judgement Date

28 Mar 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Excise, VAT & Custom

The Kerala High Court ruled that expired bank guarantees cannot be legally sustained, dispelling a customs claim. This decision clarifies the legal status of expired bank guarantees in customs-related matters. It emphasizes that expired guarantees have no legal validity. The ruling protects businesses from unwarranted claims based on expired financial instruments. It reinforces the importance of timely action and adherence to contractual terms. This order provides clarity on the legal limitations of bank guarantees.