Central Excise and a bounced cheque

By Vijay Kumar

A cheque given to the Central Excise department is dishonoured. The department files a criminal complaint. The cheque was given in honour of some adjudication order demanding duty. The demand was quashed by the Supreme Court. The cheque was given on an understanding that it would not be presented without the consent of the assessee. But the cheque is presented and bounced. The assessee challenges the summons from the High Court and the High Court holds that when the demand itself is struck down by the Supreme Court, there is no logic in pursuing the bounced cheque.

Since when has the department started accepting cheques for payment of excise duty and why should the department file a complaint when the demand itself was struck down?

See more details of this interesting case in our Breaking News.