Modvat credit dispute treated as debatable, leading to stay on recovery and waiver of pre-deposit.

The dispute concerned entitlement to stay against recovery and waiver of pre-deposit pending appeal where the assessee's availment and reversal of Modvat credit was in question. The issue was regarded as debatable and prima facie arguable in favour of the appellants, so recovery was stayed and pre-deposit was waived.

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Issues: Whether the appellants were entitled to stay against recovery and waiver of pre-deposit pending disposal of the appeal, in view of the dispute regarding availment and reversal of Modvat credit.

Outcome: The issue was treated as debatable and prima facie arguable in favour of the appellants, and stay against recovery together with waiver of pre-deposit was granted.

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