CCE Vs. GENUS OVERSEAS ELECTRONICS LTD.

JUDGEMENT

(1.) THE issue raised in this reference is as to what constitutes "payment" of Central Excise Duty by an assessee, i.e., whether the deposit of Cheque towards payment of duty in the authorized Bank satisfies the requirement or whether the requirement is satisfied only when the Cheque is cleared and the amount deposited to the Government Account. Provisions of Rule 8, 49 and 173 G of Central Excise Rules 1944 have been referred to in this case.

(2.) RULE 8 of Central Excise Rules which relates to "manner of payment on duty" requires that duty on goods removed from the factory or warehouse during the first fortnight of the month shall be paid by 20th of that month and the duty on the goods removed from the factory or the warehouse during a month shall be paid by the 5th day of the following month. In the context of this requirement, dispute arose as to whether deposit of Cheque by the dates indicated in the Rule was sufficient or whether the Cheques so deposited should have been cleared and credited to the Government Account. The Adjudicating authority took the view that only upon clearance of the Cheque it could be held that payment of duty had been made by an assessee. The Commissioner (Appeal) took the contrary view and held that deposit of the Cheque satisfied the requirement. When the matter came up in appeal by the Revenue before a Division Bench of this Tribunal, it was contended that in view of the provisions of Central Government Account (Receipt and payments) Rules, 1983, in particular Rule 20, only upon clearance of the Cheque, the requirement would be met. The Division Bench referred the matter to the Larger Bench since the earlier decision of this Tribunal in the case of Hemnil Metal Processors Pvt. Ltd. v. CCE, Pune reported in 2002 (143) ELT 679 had been rendered without taking into account the provisions of Central Government Account (Receipt and Payments) Rule, 1983.

(3.) WE have heard Shri Rajeev Tandon, Learned SDR and Shri B.L. Narasimhan, learned Advocate in the matter and perused the records. The submission on behalf of the Government is based on the Provisions of Rule 20 of Central Government Account (Receipt and Payments) Rule, 1983. This Rule reads as under: -