- (1.) Heard Sri A. P. Mathur, learned Counsel for the petitioner and Sri Vikram Gulati, learned Counsel for the respondents.
(2.) This writ petition under Article 226 of the Constitution of India is filed against the order of the appellate authority whereby the application of the petitioner for grant of stay of recovery was partly rejected.
(3.) The petitioner had availed Modvat credit under the Central Excise Rules, 1944 to the tune of Rs. 58,70,993/-. Notice was served by the Assistant Commissioner of Central Excise, Division-III, Noida calling upon the petitioner to show cause why not the credit availed by him be disallowed. The petitioner filed objection and after consideration of the same the Commissioner of Central Excise disallowed Modvat credit to the tune of Rs. 54,12,753/- out of which Rs. 84,474- debited by the parties were appropriated by the department and for the remaining Rs. 53,28,229/- the petitioner was directed to deposit the same forthwith. It was also ordered that if the amount is not paid within three months of the receipt of the order then the petitioner shall be liable to pay simple interest at the rate of 18 per cent per annum from the date immediately after expiry of the said period of three months.;