Conditional pre-deposit relief granted where Modvat credit dispute required detailed evidence review before final hearing.

Arguable Modvat credit issues requiring detailed appreciation of evidence justified deferring final determination to the appeal hearing, but not a complete waiver of pre-deposit or full stay of recovery. Balancing the assessee's hardship against the merits, conditional relief was granted: part of the duty had to be deposited, and recovery of the remaining duty and the entire penalty was stayed on compliance.

---

---

Issues: Whether waiver of pre-deposit and stay of recovery should be granted pending disposal of the appeal.

Analysis: The merits of the dispute were found to be arguable and dependent upon appreciation of a substantial volume of evidence concerning the statutory requirements governing Modvat credit. The matter was therefore considered more appropriate for determination at the stage of final hearing on merits. At the same time, the Court was not satisfied that the case justified staying the impugned order in full. Balanced against the plea of hardship, conditional relief was granted by directing a substantial pre-deposit and dispensing with recovery of the remaining duty and the entire penalty upon compliance.

Conclusion: Full waiver of pre-deposit and complete stay were refused, but conditional relief was granted by directing pre-deposit of part of the demand and staying recovery of the balance on compliance.

---