Deemed credit under Notification 58/97-C.E. upheld prima facie where supplier payment was made by bank draft.

Denial of deemed credit under Notification No. 58/97-C.E. was challenged on the ground that the supplier was paid by bank draft rather than cheque. The Tribunal treated payment from the appellant's own bank account by bank draft as sufficient for a strong prima facie case, and granted waiver of pre-deposit of duty and penalty pending appeal.

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Issues: Whether the appellant was entitled to waiver of pre-deposit of duty and penalty in view of denial of deemed credit under Notification No. 58/97-C.E. on the ground that payment to the supplier was made by bank draft instead of cheque.

Analysis: The application concerned waiver of pre-deposit pending appeal. The benefit of deemed credit under Notification No. 58/97-C.E. had been denied because the supplier was paid through bank draft and not by cheque. The Tribunal found that the payment was made from the appellant's own bank account by bank draft, and on that basis held that a strong prima facie case was made out for interim relief.

Conclusion: Waiver of pre-deposit of duty and penalty was granted in favour of the appellant.

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