Modvat credit interest claim governed by Section 37B circular and Section 11BB clarification; applications disposed with liberty on other issues.

Delayed grant of Modvat credit and the related claim for interest were considered in light of whether a circular issued under Section 37B, read with Section 11BB of the Central Excise Act, 1944, should govern the issue. The Court recorded a clarification on that point and disposed of the applications, while reserving liberty for the parties to move the Court on other aspects.

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Issues: Whether, in the context of delayed grant of Modvat credit and the connected claim for interest, the circular issued under Section 37B with reference to Section 11BB of the Central Excise Act, 1944 should govern the matter.

Outcome: The Applications were disposed of after the clarification recorded by the Court, with liberty reserved to move the Court on other aspects.

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