2002 (10) TMI 430 - AT - Central Excise

Summary

Issues:
- Determination of relevant date of payment for duty clearance through cheques.
- Interpretation of Central Government Account (Receipts and Payments) Rules, 1983 in relation to Central Excise duties.
- Applicability of judgments in determining the date of payment for excise duty.

Issue 1: Determination of relevant date of payment for duty clearance through cheques

The case involved a dispute regarding the relevant date of payment for excise duty clearance through cheques. The department contended that the date of clearance of the cheque, not the date of presentation, should be considered for payment. The Commissioner (Appeals) held that unless cheques are dishonored, the date of presentation in the bank is the relevant payment date. The department argued that the Central Government Account (Receipts and Payments) Rules, 1983 govern such payments, emphasizing Rule 20 for determining the payment date based on cheque clearance.

Issue 2: Interpretation of Central Government Account (Receipts and Payments) Rules, 1983 in relation to Central Excise duties

The department relied on the Central Government Account (Receipts and Payments) Rules, 1983 to support their argument that the date of cheque clearance is crucial for excise duty payment. They highlighted Rule 20 of these Rules, which specifies the date of payment for government dues through cheques. The Commissioner (Appeals) considered these rules in conjunction with past judgments and held that the date of presentation in the bank, not clearance, should determine the payment date for excise duties.

Issue 3: Applicability of judgments in determining the date of payment for excise duty

The Commissioner (Appeals) cited various judgments, including one from the Hon'ble Supreme Court, to support the position that the date of presentation of cheques should be the relevant date for excise duty payment. The department argued for the consideration of the Central Government Account (Receipts and Payments) Rules, 1983, emphasizing a circular clarifying the payment date based on cheque clearance. The Tribunal noted the divergence between past decisions and the 1983 Rules, prompting a referral to a Larger Bench for a definitive ruling on whether the date of presentation or clearance of cheques determines the payment date for Central Excise duties.

This comprehensive analysis of the judgment delves into the conflicting interpretations of the relevant payment date for excise duty clearance through cheques, the significance of the Central Government Account (Receipts and Payments) Rules, 1983, and the need for a Larger Bench to resolve the discrepancy between past decisions and the rules governing excise duty payments.