Modvat credit dispute led to partial pre-deposit before interim stay and suspension of recovery during appeal.

In an appeal against denial of Modvat credit, interim stay and waiver of pre-deposit were considered pending disposal of the challenge. The order noted that the appellant had not satisfactorily explained the loss of the duplicate invoice copy and had taken credit before installation of the capital goods, so complete waiver was not granted. A partial pre-deposit was directed as a condition for interim relief. On compliance, recovery of the balance duty and the entire penalty was stayed for the pendency of the appeal.

---

---

Issues: Whether, in an appeal against denial of Modvat credit, waiver of pre-deposit and stay of recovery could be granted pending disposal of the appeal.

Analysis: The appeal involved a disputed duty demand and penalty arising from denial of Modvat credit, with the appellant seeking interim protection. The order noted that the appellant had not satisfied the authorities regarding loss of the duplicate invoice copy and had also taken credit before installation of the capital goods, and on that basis directed a partial pre-deposit as a condition for stay.

Outcome: The appellant was directed to deposit part of the amount, and upon compliance the balance duty and entire penalty were waived and recovery stayed during the pendency of the appeal.

---