Chequer payment date for excise duty is treated as the tender date if the cheque is honoured, ending penalty exposure.

When central excise duty is tendered by cheque to the Government's banker on the due date and the cheque is not dishonoured, payment is treated as made on the date of tender, even if clearance occurs later. The reasoning relied on account rules and supporting decisions, and distinguished authority dealing with the fortnightly payment scheme as inapplicable. As no delay in payment was found, the basis for penalty disappeared and the penalty was vacated.

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Issues: Whether the date on which a cheque for central excise duty is tendered to the Government's banker is to be treated as the date of payment of duty when the cheque is later cleared, and whether penalty was sustainable on the alleged delay.

Analysis: The duty amounts had been paid by cheque and the cheque was presented to the Government's banker on the due date, with clearance on the next day. The reasoning accepted that, where a cheque is tendered and is not dishonoured, payment is deemed to have been made on the date of tender, as supported by the cited decisions and the Central Government account rules. The contrary authority concerning the fortnightly payment scheme was held inapplicable because the payments in question were not made under that scheme. Once no delay in payment was found, the basis for penalty disappeared.

Conclusion: There was no delay in payment of duty. The penalty was not sustainable and was vacated.

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