Procedure for deposit of Central excise duties during bank strikes, natural calamities etc.:
This procedure is to be followed only when all the banks nominated to collect revenues within a Commissionerate are unable to transact business, due to strike of banks or sudden closure of banks due to riots, imposition of curfew or natural calamities such as flood, cyclones, etc.
Normally in all cases of closure of bank business due to strike by bank employees, the public gets advance intimation either through the press, or otherwise. In all such cases, the assessees should make advance arrangements to deposit money into the banks and keep sufficient amounts in their account current [PLA] so that they do not face any difficulty in the clearance of the goods during the period of the strike.
In cases where the strike of bank employees is without notice, or where the strike called for after due notice is prolonged beyond a reasonable time (say over 3-4 days) or where there is sudden closure of banks due to riots, imposition of curfew or natural calamities such as flood, cyclones, etc., the Commissioner may adopt the procedure specified hereinafte r in partial relaxation of the provisions contained in the “Manual for collection of Revenue and payment of refunds etc.” (hereinafter referred to as ‘Manual‘) only for the duration of the strike or the sudden closures.
The Commissioners should issue a Trade Notice stating that during the days of the closure of bank business due to such strikes (specifying the dates wherever possible), the assessees can send their cheques by registered post, acknowledgement due (R.P.A.D.) or special messenger, with the GAR-7 challan duly filled in, to the Chief Accounts Officers of the Commissionerates, with a clear declaration that they have sufficient balance in their bank account.
i. They should be advised to send a copy of the letter forwarding the cheque, to the concerned Range Officer also.
ii. On the strength of a cheque so sent, they may take credit in the P.L.As.
iii. On receipt of the cheque in his office, the Chief Accounts Officer will immediately intimate the concerned Range Officer about the name of the assessee, the number and date of the cheque and its amount.
iv. Immediately after the strike is over, all such cheques should be deposited by the Chief Accounts Officer into the Focal Point Bank/State Bank of India at the Headquarters or Reserve Bank of India, as the case may be, through GAR-7 challan according to the procedure prescribed in the Manual.
v. Bank commission or collection charges, if any, chargeable by the banks should be debited in the P.L.A of the assessees by the Chief Accounts Officer under intimation to them as also the R.Os.
vi. If any of the cheques sent by the assessees are dishonoured, the Commissioners shall take appropriate penal action as prescribed under the rules.
vii. The Chief Accounts Officer should maintain a suitable record in regard to receipt and disposal of such cheques.