Modvat credit reversed under an amnesty scheme did not qualify for interest on refund, as it was not excess duty payment.

Wrongful availment of Modvat credit in breach of Notification No. 203/92-Cus. was settled under an amnesty scheme requiring reversal of the credit with interest. The later recrediting of that amount was treated as restoration of credit reversed under the settlement, not as refund of excess duty paid. On that basis, interest on the refunded amount was not payable, and the appellant was held not entitled to such interest.

---

---

Issues: Whether the appellant was entitled to interest on the amount refunded after reversal of Modvat credit under the amnesty scheme.

Analysis: The dispute arose from wrongful availment of Modvat credit in breach of the conditions of Notification No. 203/92-Cus. The Government's amnesty scheme permitted reversal of the credit along with interest to settle such disputes, and the appellant accepted that scheme. The amount later recredited represented credit reversed under that arrangement, not duty paid in excess so as to attract interest on refund.

Conclusion: The appellant was not entitled to interest on the refunded amount.

---