Undated cheques as excise payment security are impermissible; actual recorded duty payment is required under the statute.

Under the Central Excise framework, payment under Section 11A(1)(b) requires actual payment of duty and interest; undated cheques cannot be treated as legal tender or a valid discharge of liability. The document also states that ascertainment of duty and any payment process must be properly recorded in writing and cannot be handled informally on the spot without transparent proceedings. The explanation that the cheques were taken merely as security was rejected, and the practice was described as unauthorised and contrary to the statute. Accordingly, the collection and retention of undated cheques by the anti-evasion team was held impermissible and ultra vires the Central Excise Act, 1944.

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Issues: Whether the anti-evasion officers could lawfully collect undated cheques from the assessee as security or as a mode of payment under the Central Excise framework.

Analysis: The order held that payment contemplated by Section 11A(1)(b) of the Central Excise Act, 1944 must be actual payment of duty and interest, and that undated cheques could not be treated as legal tender or as valid payment. It further observed that the ascertainment of duty and any payment process had to be properly recorded in writing and could not be done informally on the spot without transparent proceedings. The explanation that the cheques were taken as security was rejected, and the practice was found to be unauthorised and contrary to the statute.

Conclusion: The collection and retention of undated cheques by the anti-evasion team was held to be impermissible and ultra vires the Central Excise Act, 1944.

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