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TMI Blog2015 (10) TMI 216X X X X Extracts X X X X X X X X Extracts X X X X ..... in the grounds of appeal as well as in the written submission filed before the first appellate authority and before the Tribunal - payment of cheque is a recognised mode of payment of sales tax dues. Now question arises that what is the date of payment, when the cheque was given to the Department or the date on which it was encashed. Payment by cheque realised subsequently on the cheque being honoured and encashed relates back to the date of the receipt of the cheque, and in law the date of payment is the date of delivery of the cheque. Applicants have clearly mentioned the date of respective bank draft/pay order/cheque and the date of deposit thereof along with challan form in the SBI which facts have not been disputed or denied by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Bank of India ( the SBI , for short) and it was merely because of time taken in collection of the amount by the SBI that the alleged delay was caused which is not, in fact, the delay as the payment collected will relate back to the date of receipt of cheque as held by the honourable Supreme Court in the case of Commissioner of Income-tax v. Oagle Glass Works Ltd.: [1954] 25 TTR 529 (SC): [1954] 24 Comp Cas. 520 (SC): ATR 1954 SC 429. He further submits that the Tribunal and the authorities below have committed manifest error of law and facts to hold the penalty to be levied upon the applicant and submits that the delay was only for two or three days which was merely because of the period exhausted by the bank in collecting the amount and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... specific grounds were taken by the applicant with complete disclosure of facts before the appellate authority that the bank draft/pay order for the tax amount was deposited well within time in the SBI which was collected by the SBI after two or three days which allegedly caused delay of two or three days as evident from the facts mentioned in the grounds of appeal as well as in the written submission filed before the first appellate authority and before the Tribunal. 9. Rule 48 of the U.P. Trade Tax Rules, 1948 provides for manner of payment as under:- 48. Manner of payment:- Unless expressly provided, otherwise, any amount payable under the Act or the Rules as tax, fee, penalty, interest, composition fee or any money for any othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e defendants tendered the amount in arrears by cheque within the prescribed time. The question is whether this was a lawful tender. It is well established that a cheque sent in payment of a debt on the request of the creditor, unless dishonoured, operates as valid discharge of the debt and, if the cheque was sent by post and was met on presentation, the date of payment is the date when the cheque was posted... 12. In K. Saraswathy Alias K. Kalpana v. P.S.S. Somasundaram Chettiar: [1990] 67 Comp Cas. 67 (SC): [1989] 4 SCC 527, the honourable Supreme Court held as under:- Payment by cheque is an ordinary incident of present day life, whether commercial or private, and unless it is specifically mentioned that payment must be in cash pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment shall relate back to the date of presentation of the cheque to the Department. 16. A perusal of the aforesaid rules makes it clear that all dealer may deposit tax, penalty, interest, compensation fees or any other money in cash or by cheque or by bank draft along with challan in quadruplicate by submitting it to the officer or authority concerned on or before the last date of payment. The facts of these present cases reveals that the applicants have clearly mentioned the date of respective bank draft/pay order/cheque and the date of deposit thereof along with challan form in the SBI which facts have not been disputed or denied by the assessing authority. In the case of Commissioner of Income-tax v. Oagle Glass Works Ltd.: [1954] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the basis of the monthly returns. Except as provided in the proviso to rule 41 the return for the month of February all other monthly returns have to be filed before the expiry of the next succeeding month. In pursuance of the proviso to rule 41, the return of the month of February shall be submitted to the Sales Tax Officer on or before 20th day of March. The return for the month of February 1992 was the applicant's first return as for earlier period the tax holiday under section 4A was in operation. It has also come in the order of the Tribunal that the applicant has deposited ₹ 1 lakh as advance for the month of March, 1992, in the month of March, 1992 itself. It was argued before the Tribunal that it should be taken as a mi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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