Duty payment due on public holiday

[S Rajiv Patro]

Dear Sir, Can you clarify on below topic?

If the due date for payment of service tax falls on public holiday so can we make the payment on next working day or on previous working day. If the answer is next working day then do let me know the notification details.

[YAGAY andSUN]

Dear S Rajiv Patro,

You must avail the benefit of e-payment in this regard as it is now mandatory. You may pay online through the following link:-

https://cbec-easiest.gov.in/EST/InputPageForEPaymentServlet

However, if paying through banking channel then you may deposit it the very next working day as per the provisions of the India Limitation Act,1963 read with Negotiable Instrument Act,1881.

In Meck Lubricants and Petrochemicals Pvt Ltd - 2004 (3) TMI 674 - CESTAT, MUMBAI, the Tribunal held that the last day of the period of limitation of six months under Section 11B of the Central Excise Act being a holiday, the refund claim filed under the said Section 11B on the next day would be deemed to have been filed within time.

In Sahuwala Cylinders Limited, the tribunal held that when the last date for filing an appeal falls on a holiday, the same can be filed on the next working day.

In Indian Seamless Steel And Alloys Ltd, the Bombay High Court held that that time prescribed by statute for doing any act if expires on a holiday should be treated to have been done within period prescribed if done on the next working day. Consequently, payment of excise duty made by the petitioners on the next working day i.e. on Monday, the 21st January, 2002 has to be treated to have been made on due date i.e. within the period prescribed as 20th January, 2002 was a Sunday when office of the Bank of Maharashtra was closed and payment could not have been made on that day. The Court also observed, It is also a well settled principle of law that the law does not compel a man to do that which he cannot possibly do and the said principle is well expressed in legal maxim “lex non cogit ad impossibilia” which is squarely attracted to the facts and circumstances of the present case.

This is for your kind information.

Regards

YAGAY and SUN

(Management and Indirect Tax Consultants)

[Mahir S]

As now payment can be made online, therefore it can be paid even on holidays.

If last day of payment is a public holiday, tax can be paid on next working day - CBEandC circular No. 63/12/2003-ST dated 14-10-2003

 

AI Summary

Payment of service tax: electronic payments allowed on holidays; banking payments may be made on the next working day. If a service tax payment due date falls on a public holiday, taxpayers may pay via electronic channels on that holiday; where banking channels are used and payment cannot be made because of the holiday, payment on the next working day is treated as within time under Limitation Act principles and related commercial law provisions. Administrative guidance supports electronic payment use and accepts next-working-day banking payments when the due date is a holiday.