MODVAT credit reversal and duplicate duty recovery: stay granted pending appeal where the alleged short levy was already reversed.

Reversal of allegedly irregular MODVAT credit was treated as the only apparent basis for the short levy, and a fresh duty demand for the same amount was regarded as duplicative recovery on a prima facie view. The note further states that payment through the PLA is required only where no balance remains in the MODVAT account to make good the short levy. Pending appeal, stay and waiver of recovery were granted and the departmental authorities were directed to lift detention for recovery purposes.

---

---

Issues: Whether the duty demand could again be enforced after reversal of the alleged irregular MODVAT credit, and whether stay and waiver of recovery should be granted pending appeal.

Analysis: The only apparent basis for short levy was the alleged irregular availment of MODVAT credit, which had already been reversed. On that prima facie view, demanding duty again to the same extent would amount to a duplication of recovery. The Tribunal also noted that only where there is no balance in the MODVAT account would payment through the PLA be necessary to make good the short levy.

Outcome: Stay and waiver of recovery of the duty demand were granted, and the departmental authorities were directed to lift the detention for recovery purposes pending disposal of the appeal.

---