Modvat credit on subsidiary gate passes supported waiver of pre-deposit and stay of duty recovery.

In the context of Modvat credit, earlier Tribunal decisions had accepted subsidiary gate passes issued on or after 1-4-1994 against original gate passes issued before that date, as well as pre-1-4-1994 gate passes endorsed thereafter, as valid documents for credit. On that basis, the appellant was treated as having a strong prima facie case on the acceptability of invoices and subsidiary gate passes. Pre-deposit of the duty demand was therefore waived and recovery of the demand was stayed.

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Issues: Whether the appellant was entitled to waiver of pre-deposit and stay of recovery in respect of the duty demand, in the context of the acceptability of invoices and subsidiary gate passes for Modvat credit.

Analysis: The Tribunal noted that earlier decisions had accepted subsidiary gate passes issued on or after 1-4-1994 against original gate passes issued prior to that date, or gate passes issued prior to 1-4-1994 and endorsed thereafter, as valid for credit. In view of those decisions, the appellant was found to have a strong prima facie case.

Conclusion: Pre-deposit of the duty demand was waived and recovery of the demand was stayed.

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