Per C.N.B. Nair : The issue raised in this reference [reported in 2002 (53) RLT 429 (CEGAT-Del.)] 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 [sic-9] 49 and 173G of Central Excise Rules, 1944 have been referred to.

2. Rule 8 of Central Excise Rules [2002] which relates to "manner of payment of 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 th