Union Of I vs Maharaja Shree Umaid Mills

The Supreme Court addressed the liability to pay interest under Section 112 of the Finance Act, 2000 concerning MODVAT credit availed on High Speed Diesel Oil used in manufacturing. The Court held that interest at the rate of 24% per annum is payable on wrongfully availed MODVAT credit after 30 days from the assent of the Act, as per the provisions of the Central Excise Rules, 1944. The judgment clarifies the applicability of interest on MODVAT credit, reinforcing the Revenue's authority to recover such interest.