https://www.taxtmi.com/caselaws?id=3529 Refund of duty paid through Modvat credit cannot be denied later on the ground that the input credit was allegedly inadmissible because the final products were exempt, where the department did not timely disallow and recover the credit under the governing scheme. Once the refund issue has attained finality and the duty payment is found unsustainable, the duty paid through credit remains refundable unless the credit was separately challenged in proper proceedings. On delayed refunds, interest runs on the full refundable amount after the statutory three-month period from the date of the refund application, and the appellate order favourable to the assessee governs the computation. en-us Mon, 22 Oct 2007 00:00:00 +0530 Fri, 30 Oct 2009 10:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=3529 Refund of duty paid through Modvat credit cannot be denied later on the ground that the input credit was allegedly inadmissible because the final products were exempt, where the department did not timely disallow and recover the credit under the governing scheme. Once the refund issue has attained finality and the duty payment is found unsustainable, the duty paid through credit remains refundable unless the credit was separately challenged in proper proceedings. On delayed refunds, interest runs on the full refundable amount after the statutory three-month period from the date of the refund application, and the appellate order favourable to the assessee governs the computation. Case-Laws Central Excise Mon, 22 Oct 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=3529