Modvat credit documents with minor defects may still support conditional waiver of pre-deposit and stay of recovery.

In a Modvat credit dispute, minor procedural defects in supporting documents were treated as insufficient to deny substantive relief, but the claimant was also expected to verify the validity of the documents relied on for credit. Balancing these considerations, conditional protection was granted rather than full unconditional relief, and waiver of pre-deposit together with stay of recovery was allowed subject to deposit of Rs. 16,000/-.

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Issues: Whether the appellant was entitled to waiver of pre-deposit and stay of recovery in a Modvat credit dispute despite alleged procedural defects in the supporting documents.

Analysis: The order noted the competing considerations that minor procedural lapses should not necessarily defeat a substantive benefit, while the purchaser was also expected to exercise caution regarding the validity of documents forming the basis of the claim. On the totality of the circumstances, conditional relief was considered appropriate.

Outcome: Waiver of pre-deposit and stay of recovery were granted, subject to deposit of Rs. 16,000/-.

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