Modvat credit dispute on rectified documents led to partial pre-deposit relief and stay of recovery.

Debatable admissibility of Modvat credit on documents later rectified by fresh invoices, affidavits and supplier certificates justified only partial interim relief. The appellant was not given full waiver of pre-deposit; instead, it was directed to deposit Rs. 12,00,000 within two months. On compliance, recovery of the balance duty and penalty remained stayed pending appeal.

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Issues: Whether the appellant was entitled to waiver of the balance pre-deposit and stay of recovery pending appeal.

Analysis: The appeal raised debatable questions regarding the admissibility of Modvat credit on documents later rectified by fresh invoices, affidavits, and supplier certificates. In view of the arguable nature of the dispute, the appellant was granted partial relief subject to a monetary deposit, with recovery stayed on compliance.

Conclusion: The appellant was not granted full waiver, but was directed to deposit Rs. 12,00,000 within two months, after which recovery of the balance duty and penalty would remain stayed.

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