Partial pre-deposit waiver in MODVAT credit dispute granted where original invoices were not produced for verification.

Partial waiver of pre-deposit was granted in a MODVAT credit dispute where the appellant had not produced the original invoices for verification and relied on duplicate copies. The tribunal found the matter fit for examination on merits in the appeals, but the prima facie case was not strong enough for full waiver at the stay stage. Balance of convenience supported limited interim relief, so the appellant was directed to deposit Rs. 3,00,000 within six weeks; on compliance, the balance pre-deposit was waived and recovery was stayed during the pendency of the appeals.

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Issues: Whether the applicant was entitled to full waiver of pre-deposit and stay of recovery pending disposal of the appeals.

Analysis: The applications arose from a common order concerning denial of MODVAT credit on the ground that original invoices were not produced. On a prima facie view, the applicant had not produced the original invoices for verification, though reliance was placed on duplicate copies. The matter was considered suitable for examination in the appeals on merits, but the balance of convenience justified only partial relief at the stay stage.

Conclusion: Full waiver was not granted. The applicant was directed to deposit Rs. 3,00,000 within six weeks, and on such deposit the balance pre-deposit stood waived and recovery was stayed during the pendency of the appeals.

Final Conclusion: Interim relief was granted only in part, subject to a quantified pre-deposit, with protection against recovery for the remaining demand during the appeal.

Ratio Decidendi: At the pre-deposit stage, relief may be confined to a partial waiver where the appellant does not establish a strong prima facie case, while the balance can be stayed upon compliance with a directed deposit.

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