CE - CENVAT Credit on HSD - Finance Act 2000 disallowed CENVAT Credit on HSD and any credit taken was to be reversed within thirty days of enactment - If not reversed, interest at 24% leviable - Supreme Court

By Vijay Kumar

ISSUE relates to the CENVAT Credit on HSD during the period 16th March 1995 to 12th May 2000. As per Section 112 of the Finance Act 2000, interest at the rate of 24% p.a. had to be paid on the MODVAT credit wrongfully availed in respect of the duty paid on the HSD Oil used as an input. This interest liability is under challenge before the Supreme Court.

The Supreme Court yesterday confirmed that interest had to be paid by those who availed CENVAT Credit on HSD which was not reversed within thirty days from the enactment of the Finance Act 2000.

We bring you the judgement today. Please see Breaking News.