2005 (12) TMI 401 - AT - Central Excise

Summary

Issues:
1. Rejection of settlement claim under Kar Vivad Samadhan Scheme due to delayed payment.
2. Consideration of payment date under Central Excise law.
3. Applicability of High Court judgment regarding payment by cheque under the Scheme.

Issue 1: Rejection of Settlement Claim
The appellant's appeal challenged the rejection of their settlement claim under the Kar Vivad Samadhan Scheme by the Commissioner of Central Excise, Kolkata-V. The Commissioner denied the final certificate issuance as the amount was credited to the government account after the 30-day deadline. The appellant had deposited the required amount via a demand draft, but the payment was considered late, leading to the rejection of the settlement request.

Issue 2: Payment Date Consideration
The Tribunal noted that the Commissioner's decision did not consider the amendment in the Central Excise law, which allowed the date of deposit of a cheque to be considered as the payment date if not dishonored. The appellant had deposited the demand draft on 3-4-99, and it was credited to the government account on 7-4-99. The Tribunal highlighted that the department acknowledged the timely deposit of the demand draft, which should have been considered in the context of the payment deadline.

Issue 3: Applicability of High Court Judgment
The Tribunal referenced a High Court judgment regarding a similar issue of payment under the Kar Vivad Samadhan Scheme. The judgment emphasized that if a cheque was accepted and realized promptly, the benefit of the Scheme should not be denied due to the payment date technicality. In this case, the appellant had deposited the amount in advance, and it was realized on time, aligning with the High Court's ruling on the matter. The Tribunal concluded that the appellant's case fell within the scope of the High Court judgment and should be considered accordingly.

In conclusion, the Tribunal set aside the Commissioner's order and remanded the appeal for a fresh decision. The Commissioner was directed to reevaluate the settlement claim under the Kar Vivad Samadhan Scheme, considering the legal provisions and ensuring that the appellant had not been refunded the deposited amount. The Tribunal allowed the appeal by way of remand, emphasizing the importance of adhering to established legal principles in settling disputes under the Scheme.