Commissioner of C. Ex. Vs. Raj Forging and Gears Ltd.

1. revenue filed this appeal against the order-in-appeal passed by the commissioner (appeals).2. the contention of the revenue is that the appellant took credits of rs. 2 lakh each on 14.10.97 and 24.10.97 in pla whereas the amounts were deposited in govt. accounts on 15.10.97 and 25.10.97. therefore, there was no sufficient balance in the pla at the time of clearance of the goods on 14.10.97 and 24.10.97.3. the contention of the respondent is that the cheques were presented in bank on 14.10.97 and 24.10.97 in pursuance to the deposit of the presentation of the cheque. the amounts were credited on the next day in govt. account and the date of presentation of cheque is the date on which they can take credit. the respondent relied upon the board circular no. 86/2003-cus., dated 3.10.2003 where it was clarified that in respect of central excise duty and service tax, the date of payment will be the date of presentation of the cheque in the bank subject to realisation of the cheque. in the present case, the cheques were not dishonoured by the bank. in view of the above, i find no merit in the appeal, the same is dismissed.