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TMI Blog2003 (3) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1944 have been referred to. 2. Rule 8 of Central Excise Rules which relates to "manner of payment on duty" requires that duty on goods removed from the factory or warehouse during the first fortnight of the month shall be paid by 20th of that month and the duty on the goods removed from the factory or the warehouse during a month shall be paid by the 5th day of the following month. In the context of this requirement, dispute arose as to whether deposit of Cheque by the dates indicated in the Rule was sufficient or whether the Cheques so deposited should have been cleared and credited to the Government Account. The Adjudicating authority took the view that only upon clearance of the Cheque it could be held that payment of duty had been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... officer (in cases where such tendering is permissible or required under relevant departmental provisions) on the third working day after its presentation. (iii) If it is sent by post in pursuance of instructions to make payment by post, on the date on which the cover containing it is put into the post;" Based on the above Rule, the learned SDR submitted that Government dues tendered in the form of a Cheque or Draft shall be deemed to have been paid on the date on which it was cleared and entered in the receipt Account . As against this the learned Counsel for the assessee has pointed out that the requirement under Rule 8 of Central Excise Rules was distinct from the requirement under the Central Government Account (Receipt and Paymen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d be the date of receipt of the Cheque in the case of K. Saraswathy v. P.S.S . Somasundaram Chettiar and Commissioner of Income Tax, Bombay South v. M/s. Ogale Glass Works Ltd. It is also noticed that Central Excise Manual has clarified that "if any of the Cheques sent by the assessee are dishonoured, the Commissioners shall take appropriate penal action as prescribed under the Rules". Further it is also noticed that with regard to payment of service tax the following clarifications have been issued. "6. Payment by cheque - Delay in encashment beyond due date - No interest/penalty chargeable. - (i) The Rule 7 of the Central Government Account (Receipts and Payments) Rules, 1983 inter alia provides that Government dues includi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e amount is credited to the Government account in due course, but after the due date, is not fair since the assessee has no control over the time taken by the Bankers of the Government in clearing the cheque. (v) The matter has been examined. (vi) It is observed that the identical issue had arisen in case of payment of Inland Air Travel Tax (IATT) by Sahara Airlines Ltd. The concerned authorities had imposed penalty and ordered recovery of the interest from the party since the cheques deposited by them towards payment of IATT were credited to the Government after the due date. The matter has now been decided in second appeal by the Government of India [ Sahara Airlines Ltd. v. Commissioner of Customs (Appeals) - 2000 (117) E.L.T. 80 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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