Payment of Service Tax by cheque in authorized Banks-Consequences of delay in encashment beyond due date

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....delay in encashment beyond due date               The Rule 7 of the Central Government Account (Receipts and Payments) Rules ,1983 interalia provides that Government dues including taxes can be credited by the taxpayers directly into any branch of an authorised Bank. As per Rule 79 of the Treasury Rules of the Central Government, ....

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.... Government's account after the due date. Hitherto, in such cases also, the department has been levying interest and penalty. This practice has developed presumably because the Rule 79(1) (a) of the Treasury Rules interalia states that "--------, until the cheque is cleared, the Government cannot admit that payment has been received; --------" 4. A number of representations have been recei....

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....ernment has held that a harmonious reading of the provisions of Rule 7 of the Central Government Account (Receipts and Payment) Rules and Rules 79 & 80 of the Treasury Rules, makes it clear that the Government dues can be presented in the form of cheque into the authorized Bank. And if the cheque is not dishonored later, the payment shall be deemed to have been made on the date when the cheque was....