Prima facie case supported waiver of pre-deposit in a Modvat classification dispute over evaporation boats.

A strong prima facie case supported waiver of pre-deposit in a Modvat dispute over evaporation boats. The item was claimed as eligible for credit as inputs under Rule 57A, while the department treated it as capital goods under Rule 57Q and denied the benefit. The order states that the exact classification under the Modvat scheme was a matter for the competent authority, but the immediate issue was whether sufficient grounds existed to waive pre-deposit. On the facts presented, that threshold was met and waiver was granted.

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Issues: Whether the appellant made out a prima facie case for waiver of pre-deposit in relation to Modvat credit on evaporation boats, and whether the item was to be examined as inputs under Rule 57A or as capital goods under Rule 57Q.

Analysis: The item was claimed as eligible for Modvat credit, while the department treated it as capital goods and denied benefit under Rule 57A. The order records that the precise classification under the Modvat scheme was a matter for the concerned authority, and that the immediate question for consideration was whether the appellant had shown sufficient grounds for waiver of pre-deposit. On the facts placed before it, the case for prima facie consideration was found to be strong.

Outcome: The prayer for waiver of pre-deposit was allowed.

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