Cheque payment not effective until encashment; tax discharge occurs only after funds credited to government account. Payment by cheque does not discharge service tax liability until the cheque is encashed and the amount is credited to the Government account; cash and demand draft payments receive immediate credit. Trade associations should circulate this clarification, and the earlier trade notice on the subject is withdrawn.
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Provisions expressly mentioned in the judgment/order text.
Cheque payment not effective until encashment; tax discharge occurs only after funds credited to government account.
Payment by cheque does not discharge service tax liability until the cheque is encashed and the amount is credited to the Government account; cash and demand draft payments receive immediate credit. Trade associations should circulate this clarification, and the earlier trade notice on the subject is withdrawn.
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