Prima facie legality defeats interim stay on Modvat credit and ground-plan relief pending appeal.

Interim relief in the form of stay of operation of the impugned order and directions on Modvat credit was sought pending appeal. Applying the standard for interim relief under Rule 41 of the CEGAT (Procedure) Rules, 1982, the Tribunal held that the impugned order appeared proper and legal on a prima facie view and found no infirmity justifying suspension of its operation. It further noted that the mining area, being outside the factory premises and exempt from the Excise Act, could not be included in the approved ground plan. Stay and other interim relief were refused.

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Issues: Whether stay of operation of the impugned order and interim directions for Modvat credit pending appeal were warranted.

Analysis: The application was considered on the standard for interim relief under Rule 41 of the CEGAT (Procedure) Rules, 1982. The Tribunal found that the impugned order appeared proper and legal on a prima facie view, and that no infirmity existed warranting suspension of its operation. It also noted that the mining area, being outside the factory premises and exempt from the Excise Act, could not be included in the approved ground plan.

Conclusion: Stay of operation and the requested interim relief were refused.

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