Ambiguous excise payment deadline entitled the assessee to benefit of doubt against adverse demand

Rule 8(3A) was found inapplicable where central excise duty was paid one day after the 30-day period in one instance and on the next due date that fell on a government holiday in another. The provision relied on by the department referred to the date prescribed in sub-rule (2), but sub-rule (2) did not prescribe any date, creating ambiguity in compliance. On that basis, the benefit of doubt was extended to the assessee, and the adverse demand and related orders were not sustained.

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Issues: Whether the appellants' payment of central excise duty on the 31st day, and on the next due date falling on a government holiday, attracted Rule 8(3A) of the Central Excise Rules, 1944.

Analysis: The duty for the relevant months was paid one day beyond the 30-day period in one instance, while in the other instance the 30th day was a government holiday. The provision invoked by the department referred, at the material time, to the date prescribed in sub-rule (2), but sub-rule (2) did not prescribe any date. In these circumstances, the ambiguity in the rule and the factual position regarding payment warranted extending the benefit of doubt to the appellants.

Conclusion: Rule 8(3A) was held not to justify the impugned demand or adverse orders against the appellants, and the issue was answered in favour of the assessee.

Final Conclusion: The orders of the authorities below were set aside and the appeal succeeded on the benefit of doubt arising from the manner of payment and the reference in the rule.

Ratio Decidendi: Where the operative sub-rule refers to a non-existent or unprescribed date and the surrounding facts create a genuine ambiguity in compliance, the assessee is entitled to the benefit of doubt and adverse action cannot be sustained.

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