Cheque tender in authorised bank counts as excise duty payment on date of tender if not dishonoured.

Tender of a valid cheque in the authorised bank was treated as payment of central excise duty on the date of tender, not on the later date of clearance and credit to the Government account. The ruling applied the Central Excise Rules, 1944 and the governing principles on receipt of Government dues, holding that actual clearance is not decisive where the cheque is presented in time and is not dishonoured. On that basis, the assessee's payment was accepted as timely and the Revenue's challenge failed.

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Issues: Whether deposit of a cheque in the authorised bank constituted payment of central excise duty, or whether payment was made only on clearance and credit of the cheque to the Government account.

Analysis: The question was examined in the context of Rule 8, Rule 49 and Rule 173G of the Central Excise Rules, 1944 and the provisions governing receipt of Government dues. The governing view was that where a cheque is tendered within time in the authorised bank and is not dishonoured, payment is complete on the date of tender/receipt of the cheque. The date of actual clearance is not decisive for this purpose. Support was drawn from the consistent judicial view and the departmental clarification that dishonour or attributable delay alone would justify adverse action.

Conclusion: Deposit of a valid cheque in the authorised bank satisfies the requirement of payment of duty. The reference was answered in favour of the assessee and the Revenue's appeal failed.

Final Conclusion: The impugned order accepting cheque deposit as timely payment was affirmed, and the matter was finally concluded against the Revenue.

Ratio Decidendi: For the purpose of payment of central excise duty, tender of a cheque in the authorised bank constitutes payment on the date of tender, provided the cheque is not dishonoured.

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