2005 (5) TMI 397

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....er (Oral)]. - The appellants had taken Modvat credit of Rs. 3,52,055/- on certain capital goods received in their factory in 1995. A show cause notice was issued by the Department for disallowing this credit. The original authority disallowed the credit, whereupon the party debited the above amount in their RG 23C Part II, even while preferring an appeal to the Commissioner (Appeals) against the....

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....Mehsana v. Annapurna Plastopack Pvt. Ltd. reported in 2004 (167) E.L.T. 529 (Tri. - Mumbai) and submits that interest is liable to be paid on delayed refund of Modvat credit amount under Section 11BB of the C.E. Act, 1944. The learned JDR seeks to distinguish the cited case by submitting that, in that case, the amount of Modvat credit had been refunded pursuant to a specific order passed by the fi....

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....l. They took credit as late as on 30-3-2002, for which the Department cannot be faulted. Apparently, this is not a case of delayed grant of Modvat credit but one of delayed availment of credit. Therefore, the assessee is not entitled to claim interest on the credit amount from the Department. This being the position, it is not necessary for me to go into any meticulous examination of the rival con....