2003 (1) TMI 320

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...., JDR, for the Respondent. [Order]. -  The appellants are registered manufacturers of excisable goods. On scrutiny of R.T. 12 Return pertaining to the period from May, 98 to December, 98, the Range Officer observed that the clearances have been affected without sufficient balance in their personal ledger account and therefore they had contravened the provisions of Rules 9(1), 49(1), 173....

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....These instructions provide that value paid instruments/value received instruments like Bankers cheques/demand drafts, etc., shall be treated on par with cash payment when they are presented with T.R. 6 Challan and the Challan should be released immediately to the tenders by making endorsement "payment received" as in the case of cash payment. Therefore payment through Bankers cheque in the present....

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....volved in the TR 6 Challans were actually realised in the Government account, after a period ranging from one to six days after the above endorsement on the TR 6 Challans. The appellant should therefore not have taken credit, until the same was realised and credited into the Government account. Since the appellants continued to take credits in the PLA on the same day of the receipt of TR 6 Challan....

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....1)(d) of the Act. 4. I find that there is no doubt that the amount as tendered on bankers cheques, which are value paid instruments, the appellant took up the matter with the RBI who vide their letter dated 8 January, 1999 have clarified that the instructions have already been issued to banks to deliver the receipted Challans immediately; if the Challans are accompanied by value received i....