Cheque payment date for excise duty is the bank presentation date if the cheque is realised and not dishonoured.

Where central excise duty is paid by cheque, the date of payment is the date the cheque is presented in the bank, provided the cheque is subsequently realised and not dishonoured. The Tribunal applied the Board circular clarifying that credit can be recognised from the presentation date even if the amount reaches the Government account on the next day. On that basis, the respondent was entitled to treat the duty as paid on presentation of the cheque, and the Revenue's appeal failed.

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Issues: Whether payment of central excise duty by cheque is to be treated as made on the date of presentation of the cheque in the bank when the cheque is subsequently realised and not dishonoured.

Analysis: The dispute turned on whether credit in the Personal Ledger Account could be recognised on the date the cheque was presented, even though the amount was credited to the Government account on the next day. The Tribunal relied on the Board Circular clarifying that, for central excise duty and service tax, the date of payment is the date of presentation of the cheque in the bank, subject to realisation of the cheque. As the cheques were not dishonoured, the respondent was entitled to treat the payment as made on the date of presentation.

Conclusion: The date of presentation of the cheque was accepted as the relevant date of payment, and the Revenue's appeal was rejected.

Ratio Decidendi: Where duty is paid by cheque and the cheque is realised, the date of presentation of the cheque in the bank is the date of payment for excise purposes.

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