9911796707
TMI Blog2002 (10) TMI 430X X X X Extracts X X X X X X X X Extracts X X X X ..... of on the TR - 6 challans by the concerned notified bank. Being aggrieved by this order Revenue has filed captioned appeal. 2. The facts of the case in brief are that M/s. Genus Overseas Electronics Ltd., the respondent herein are central excise registration holder. On scrutiny of their records it was observed that the respondent herein were paying duty through cheques. In terms of Rule 49(l) read with Rule 8 of Central Excise (No. 2) Rules, 2001 a manufacturer was required to pay duty in respect of clearances of excisable goods during the first fortnight of the month by the 20th day of that month and during the second fortnight of the month other than the month of March by the 5th day of the succeeding month. On scrutiny of the records o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... went before the Commissioner (Appeals). The learned Commissioner (Appeals) held that the assessee had paid the duty on time; that unless cheques are dishonoured the relevant date of payment would be the date of presentation of the cheque in the notified bank and not the date of clearance of the cheque; that the assessee had presented the cheques before the due date for payment of duty. 5. Shri Mewa Singh along with Shri Rajeev Tandon, learned SDRs submit that the learned Commissioner (Appeals) decided the issue in terms of the Central Treasury Rules and General Clauses Act, 1897 and observed that in the present case the date of presentation of the cheque in the notified bank was not disputed; that as verified through Chief Accounts Offic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held that submission of cheque constitute payment. The learned Commissioner also relied the judgment in the case of Sahara Airlines Ltd., reported in 2000 (117) E.L.T. 802 (G.O.I.) wherein it was held that Government dues can be presented in the form of cheque into the accredited bank. Upon tendering of the cheque, if it is not dishonoured later, it shall be deemed that payment has been made on the date when it was handed over to Govt. s bankers. The learned Commissioner (Appeals) held as indicated above. 6. The main contention of the appellant-Revenue was that on departmentalization of accounts, the Government of India formulated the Central Government Account (Receipts and Payments) Rules, 1983. It was contended that the preamble of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ffice may, at its discretion, refuse to accept - (i) Cheques or drafts tendered on the last day to the former and on the last two working days to the latter respectively; and or (ii) Cheques or drafts which require clearance at the inter-bank clearing house before credit can be afforded to Government Account, if and when work of such clearing house is disrupted or apprehended to get disrupted so as to impede realization of credit thereof by the due date. Explanation - For the purpose of this rule and Rule 20 working day shall be deemed to be a day on which the departmental office and the bank are both open for transacting their respective ordinary business . 8. The main thrust of the arguments of the departmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d as credit to the account of Central Government. The DRs submit that the Hon ble Tribunal had no occasion to examine that there are Central Government Account (Receipts and Payments) Rules, 1983. It was, therefore, submitted that the matter perhaps need consideration by the Larger Bench. 10. The learned SDRs also submitted that the Ministry of Finance (Department of Revenue) by its circular MF(DR) circular No. 28/2002-Cus., dated 24-5-2002 clarified that in the case of cheques and drafts tendered to the bank on the date on which it is cleared and entered into the receipts scroll in the Government dues shall be deemed to have been paid in terms of Rule 20. In other words the date of payment shall be the date on which cheque is cleared/rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overnment Account (Receipts and Payments) Rules, 1983 on reference thereto. As the 1983 Rules are specific governing receipts and payments in the Central Government Account they will prevail over the Central Treasury Rules or the General Clauses Act. Since Central Treasury Rules were not the relevant rules applicable, therefore, the examination of the Central Government Account (Receipts and Payments) Rules, 1983 become all the more important for the purpose of determination as to what will be the date of bank drafts. Rules 19 and 20 of the Central Government Account (Receipts and Payments) Rules, 1983 are specific on the issue. Therefore, having regard to the preamble as also the provisions of Rules 19 and 20 and the clarification given in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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