Modvat credit dispute led to only partial waiver of pre-deposit, with deposit required before merits hearing.

Modvat credit availed through invoices was examined under the excise credit rules in the context of a request for stay and waiver of pre-deposit. The issue was found prima facie arguable, but not strong enough to justify complete dispensation of the statutory deposit requirement. Partial relief was therefore granted, with the remaining amount directed to be deposited before the appeal could be heard on merits.

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Issues: Whether the appellant was entitled to complete waiver of pre-deposit and stay of recovery in the appeal proceedings.

Analysis: The dispute concerned the mode of availing Modvat credit on invoices and the applicability of the relevant excise credit rules. On a prima facie appraisal, the issue was considered arguable, but not sufficient to justify total dispensation of the statutory pre-deposit. Relief was therefore confined to a partial waiver, with the remaining amount directed to be deposited for hearing of the appeal on merits.

Conclusion: Complete waiver of pre-deposit was declined, but partial dispensation was granted on compliance with the deposit direction.

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