Court Waives Duty Pre-Deposit & Stayed Recovery Pending Appeal in Modvat Credit Eligibility Case

The court granted a waiver on pre-deposit of duty and stayed recovery pending appeal in a case concerning Modvat credit eligibility for items used in paper manufacturing. The dispute was referred to the Larger Bench for resolution.

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The issue in the case is eligibility for Modvat credit on items used in manufacturing paper. The department denied credit, leading to a dispute referred to the Larger Bench. Pending appeal, pre-deposit of duty is waived and recovery stayed. The matter is to be mentioned before the Larger Bench.

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