Prima facie case for partial stay on Modvat credit denial where some objections lacked specific grounds and supporting proof.

Production of a statement of account alone was held insufficient to prove actual payment without supporting details, and weighment slips did not establish the disputed transportations where the transporters denied movement of goods and the vehicles were found to be non-transport vehicles. On those facts, no prima facie infirmity was found in the denial of Modvat credit. However, where credit was denied on the basis that vehicle owners' addresses were fake, and where the denial was made without specifying the ground, a prima facie case for stay was found to that extent. Partial stay was granted, with deposit directed only for the balance duty demand identified by the Tribunal and waiver of interest and penalty allowed pending appeal on such deposit.

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Issues: Whether the appellants made out a prima facie case for partial stay and waiver of pre-deposit in respect of denial of Modvat credit, interest and penalty.

Analysis: Production of a statement of account by itself was held insufficient to prove actual payment without supporting details. The weighment slips also did not establish the disputed transportations, particularly where the transporters had denied movement of goods and the vehicles were found to be non-transport vehicles. On those counts, no prima facie infirmity was found in the denial of credit. However, where credit was denied on the basis that the addresses of vehicle owners were fake, and where credit was denied without specifying the ground, a prima facie case for stay was found to that extent.

Conclusion: The appellants were granted partial stay and directed to deposit the balance amount of duty demand identified by the Tribunal, while waiver of interest and penalty was allowed till disposal of the appeal on such deposit.

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