Prima facie case for Modvat credit supported waiver of pre-deposit and stay of recovery during appeal.

Waiver of pre-deposit was granted in an appeal concerning denial of Modvat credit on invoices re-numbered by the supplier after permission from the Superintendent. The Tribunal found a prima facie case for dispensing with pre-deposit because the invoices were old blank printed forms reused with approval, indicating compliance with the procedural requirement. Recovery of the confirmed demand was stayed during pendency of the appeal.

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Issues: Whether waiver of pre-deposit and stay of recovery should be granted in an appeal against denial of Modvat credit on invoices re-numbered by the supplier after permission from the Superintendent.

Analysis: The application was considered on the question whether the appellants had shown a prima facie case for dispensing with pre-deposit. The invoices relied upon were old blank printed invoices re-used by the supplier after approval by the Superintendent, and the Tribunal treated this as sufficient for a prima facie showing that the procedural requirement had been met. On that basis, recovery of the confirmed amount was stayed during pendency of the appeal.

Conclusion: Waiver of pre-deposit was granted and recovery was stayed in favour of the appellant.

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