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K.R. Srivats

New Delhi , Oct. 7

IN a change of stance, the Central Board of Excise and Customs (CBEC) has now held that the date of presentation of the cheque in the bank would be reckoned as the date on which central excise duties and service tax dues are deemed to have been paid. This is, however, subject to the realisation of the cheque.

Hitherto, the Revenue Department had taken a position that the date on which the cheque is cleared/realised by the bank would be the date of payment for all Government dues, especially the collection of tax revenues.

The Finance Ministry had in the year 2002 sought the opinion of the Controller-General of Accounts (CGA) on the same matter.

The CGA had held that collection of tax revenues is governed by the Central Government Accounts (Receipts and Payment) Rules, 1983 and that rule 20 specifies that Government dues are deemed to have been paid in the case of cheques and drafts tendered to the bank on the date on which it is cleared and entered into the receipts scroll.

The CBEC had in May 2002 issued a circular that upheld the position of the CGA.

Citing the presence of specific provisions in the Central Excise and Service Tax rules, the CBEC has now held that the May 2002 position would not be applicable for payments of central excise and service tax.

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