Cheque presentation date governs duty payment timing; personal penalty was set aside where clearance was delayed without mala fides.

A personal penalty was challenged on the basis that duty had been tendered by cheque before the due date, the cheque was presented in time, and encashment was delayed only because of an unforeseen banking circumstance. The settled principle applied was that the relevant date is the date of presentation of the cheque, with later clearance relating back to that date. In the absence of mala fides, the penalty was found unsustainable and was set aside.

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Issues: Whether personal penalty could be sustained where the duty amount was tendered by cheque, the cheque was presented within time, and clearance was delayed due to an unforeseen circumstance.

Analysis: The cheque towards duty was deposited before the due date. The delayed clearance in the bank account was attributable to an unforeseen circumstance, and no mala fide could be attributed to the appellant. The settled legal position applied was that the relevant date is the date of presentation of the cheque, and later encashment relates back to that date.

Conclusion: The penalty was not justified and was set aside in favour of the appellant.

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