Holiday falling on due date: excise duty paid next working day was treated as timely under the General Clauses Act.

Excise duty paid on the next working day after the due date, where the last day fell on a holiday, was treated as payment in time. Rule 8 of the Central Excise Rules, 2002 prescribes the due date for monthly payment and sub-rule (3A) imposes consequences for default, but section 10 of the General Clauses Act applies when the prescribed day falls on a closed day. On that principle, performance on the next open day is deemed timely, so no default arose and the direction to require consignment-basis payment for two months was unsustainable.

---

---

Issues: Whether excise duty paid on the next working day after the last date fell on a holiday could be treated as payment in time so as to avoid default under Rule 8 of the Central Excise Rules, 2002.

Analysis: Rule 8 requires duty to be paid by the prescribed due date, and sub-rule (3A) visits default beyond the permitted period with forfeiture of the facility of monthly payment. Section 10 of the General Clauses Act applies where an act is required to be done within a prescribed period and the court or office is closed on the last day; in such a case the act is treated as done in due time if performed on the next day when the office is open. Applying that principle, payment made on the next working day after the due date falling on a holiday cannot be regarded as a default.

Conclusion: Payment of excise duty on the next working day was within time and the assessee did not commit any default; the order directing payment on consignment basis for two months was unsustainable.

---