Prima facie waiver of pre-deposit granted where Modvat credit was denied on a purely technical delivery note objection.

A prima facie case for waiver of pre-deposit was found where Modvat credit was denied only on a technical objection that the word "cantt" did not appear in the delivery note address. The description of the goods, proof of duty payment, receipt of the goods, and eligibility of the input were not disputed, and the documents showed no infirmity. The objection raised was also not the basis of the show cause notice. Waiver of pre-deposit was therefore granted, and recovery of duty and penalty was stayed until disposal of the appeal.

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Issues: Whether the assessee had made out a prima facie case for waiver of pre-deposit and stay of recovery in respect of the disputed Modvat credit and penalty.

Analysis: The denial of credit rested only on a technical objection that the word "cantt" did not appear in the delivery note address, while the description of goods, proof of duty payment, receipt of goods, and eligibility of the input were not in dispute. The documents were found to disclose no infirmity, and the objection taken was not the basis of the show cause notice.

Outcome: Waiver of pre-deposit was granted and recovery of duty and penalty was stayed till disposal of the appeal.

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