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2013 (12) TMI 878 - SC - Central ExciseLiability to pay interest u/s 112 of the Finance Act, 2000 – Consequent interest under the Central Excise Rules, 1944 - Interest payable on wrongfully availed MODVAT credit – Held that:- Relying upon Sangam Spinners Limited v. Union of India & Ors. [2011 (3) TMI 4 - Supreme Court] - Section 112 of the 2000 Act did not take away any right of any assessee with retrospective effect - the HSD oil had been specifically excluded from the list of eligible inputs with effect from 16th March, 1995 and therefore, no assessee had any vested right to avail benefit of MODVAT credit on the HSD oil used as an input – Thus, if any benefit, which had been wrongly availed by any manufacturer, the benefit wrongfully availed had to be returned. Once it is certain that the MODVAT credit had been wrongly availed by the respondents, the Revenue cannot be blamed, if the amount wrongly availed by way of MODVAT credit by the respondents is recovered with interest - Revenue had given 30 days’ time to return the amount to the respondents who had wrongly availed MODVAT credit on the HSD oil used as an input - If anyone who had repaid the amount wrongly availed within 30 days from the date on which Section 112 of the 2000 Act got the President’s assent, that assessee had not to pay any interest on the amount of duty availed by him wrongly - But those who had availed the MODVAT credit on the HSD oil used as an input and did not return the said amount even within 30 days from the date on which the President had given assent to the enactment of Section 112 of the 2000 Act, had to return the amount wrongfully retained by them with interest at the rate of 24% p.a - such a course, adopted by the Revenue for recovery of the amount which was legitimately claimed by the Revenue, cannot be said to be bad in law - the High Court committed an error by not considering the aforestated factors – Order set aside and decided in favour of Appellant.
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