MODVAT job work procedural contravention found without duty evasion, leading to unconditional stay relief.

Unconditional stay was granted where the dispute arose from a MODVAT job work arrangement and the goods were moved under Notification No. 214/86-C.E. The Tribunal held that the record disclosed, at the highest, a procedural contravention under Rule 57F relating to movement of inputs and return of processed goods. On the facts presented, there was no evasion of duty, only a procedural infraction, and the stay petitions were allowed.

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Issues: Whether the applicants were entitled to unconditional stay in view of the allegation that the dispute involved no evasion of duty but only a procedural contravention under the MODVAT/job work arrangement.

Analysis: The applicants showed that the goods were moved under the job work arrangement and that Notification No. 214/86-C.E. dated 25-3-1986 had been availed for the work done. The record indicated that, at the highest, there was a contravention of the procedure under Rule 57F in respect of the movement of inputs and return of the processed goods. On the facts presented, the Tribunal found force in the contention that there was no evasion of duty involved and that the matter disclosed only a procedural infraction.

Conclusion: The applicants were entitled to unconditional stay, and the stay petitions were allowed.

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