2004 (10) TMI 356 - AT - Central Excise

Summary

Issues:

1. Interpretation of Rule 8(1) of the Central Excise Rules, 2002 regarding the payment of duty for a specific fortnight.
2. Applicability of Section 10 of the General Clauses Act to the facts of the case.

Interpretation of Rule 8(1) of the Central Excise Rules, 2002:

The case involved the appellants availing the facility of fortnightly payment of duty under Rule 8(1) of the Central Excise Rules, 2002, specifically focusing on the duty payment for the second fortnight of June 2002. The duty for this period was to be paid by 5-7-2002, with a provision to pay with interest within a further 30 days in case of default. The payment was made on 5-8-2002, the next working day after the 30-day period ended on a Sunday, a bank holiday. The lower authorities did not accept this argument, leading to the appeal.

Applicability of Section 10 of the General Clauses Act:

The judge, after hearing both sides, affirmed the relevance of Section 10 of the General Clauses Act to the case. Section 10 was rightly invoked by the lower authority, as it is applicable to situations under central statutes like the Central Excise Act. Since the last day of the 30-day period for duty payment fell on a bank holiday, the payment made on the next working day was deemed timely under Section 10. Consequently, the decision to withdraw the facility of fortnightly payment of duty was deemed incorrect, and the appeal was allowed, setting aside the lower authorities' decision.

This judgment clarifies the interpretation of Rule 8(1) of the Central Excise Rules, 2002 concerning duty payment timelines and underscores the importance of Section 10 of the General Clauses Act in determining the timeliness of payments in cases where the last day of a prescribed period falls on a holiday. The ruling emphasizes the need for a practical and contextual application of legal provisions to ensure fairness and adherence to statutory requirements in matters related to duty payments and statutory compliance.