Cheque presentation date counts as payment for excise duty where the cheque is realised and not dishonoured.

For Central Excise duty payment, cheque-based payment was treated as made on the date the cheque was presented in the bank, provided the cheque was subsequently realised and not dishonoured. Relying on the Board circular on the date of payment for Central Excise Duty and Service Tax, the tribunal held that PLA credit taken on the presentation date was not invalid merely because the amount reached the Government account on the following day, and the assessee's position was upheld.

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Issues: Whether, for Central Excise duty payment, credit in PLA could be taken on the date the cheque was presented in the bank, where the cheque was subsequently realised and not dishonoured.

Analysis: The respondent 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. The cheques in question were presented on the relevant dates and were not dishonoured. On that basis, the credit taken in PLA could not be treated as invalid merely because the amount was credited to the Government account on the next day.

Conclusion: The appeal was not sustainable and the respondent's position was upheld.

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