Prima facie case for credit eligibility controls pre-deposit relief; only partial waiver granted after revenue balancing.

Where the appellant failed to establish a prima facie case on the admissibility of modvat/cenvat credit on inputs and capital goods, complete waiver of pre-deposit was refused. The Tribunal noted that the Commissioner had recorded detailed objections and a reasoned finding on credit ineligibility, and that the dispute required examination of invoices and supporting documents. Balancing revenue interest against the material on record, it directed deposit of 50% of the disputed credit and stayed recovery of the balance during the appeal. The stay petition was thus disposed of by granting only partial waiver and conditional protection.

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Issues: Whether the applicant was entitled to total waiver of pre-deposit of the duty and penalty demanded in the stay application.

Analysis: The Tribunal found that the Commissioner had recorded detailed objections and a reasoned finding on the inadmissibility of credit, and that the dispute required scrutiny of invoices and documents relating to eligibility of modvat credit on inputs and capital goods. On that basis, the Tribunal held that the applicant had not made out a prima facie case for complete waiver. Considering the interests of revenue and the cited legal principle, the Tribunal directed deposit of 50% of the cenvat credit demanded and stayed recovery of the balance during pendency of the appeal.

Conclusion: Total waiver of pre-deposit was declined, and partial relief was granted by directing deposit of 50% of the disputed amount.

Final Conclusion: The stay petition was disposed of by granting only partial waiver and conditional stay, leaving the remaining demand in abeyance during the appeal.

Ratio Decidendi: Where the appellant fails to establish a prima facie case on the admissibility of credit, the appellate forum may refuse complete waiver of pre-deposit and grant only partial protection balancing revenue interest.

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