2008 (10) TMI 470

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.... Shri N.J. Kumaresh, SDR, for the Respondent. [Order per : P.G. Chacko, Member (J)]. - The Hon'ble High Court of Judicature at Madras has been pleased to condone the delay of this appeal vide order dt. 29-8-08 in WP No. 34913/2007. Their Lordships have also directed us to decide the appeal on merits within six weeks from the date of receipt of the said order. Accordingly, we take up the app....

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.... by the Commissioner (Appeals), wherein the appellate authority had allowed restoration of the Modvat credit. Later on, in a letter dt. 4-10-2002, the party claimed interest @ 24% interest on the amount of Modvat credit for the period from the date of reversal to the date of re-credit, amounting to over Rs. 91 lakhs. The reason stated by the claimant was "excess amount collected and retained by th....

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....n of law, the ld. SDR submits that it does not provide for payment of interest by the government but only for recovery of interest by the government. It is further submitted that any claim of interest under Section 11AA is applicable only to an amount of duty and is not applicable to an amount of Modvat credit. From these submissions, it appears to us that both sides are harping on the principle o....