Pre-deposit relief in excise dispute granted after considering Modvat credit, hardship, and disputed excisability of goods.

In a stay application concerning excisability, the tribunal kept the question whether the items were goods or immovable property for final hearing. It considered the appellants' Modvat credit claim in assessing the duty burden, along with financial hardship in making full pre-deposit. Partial pre-deposit of duty was directed within eight weeks, and on compliance, waiver of the remaining duty and penalty was granted with recovery stayed until final disposal of the appeal.

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Issues: Whether waiver of pre-deposit and stay of recovery should be granted in a stay application where the appellants disputed excisability of the goods and pleaded availability of Modvat credit and financial hardship.

Analysis: The dispute on whether the items were goods or immovable property was left for final hearing. The plea of Modvat credit was taken into account for assessing the duty burden, along with the claim of hardship in making the full pre-deposit.

Outcome: The appellants were directed to deposit Rs. 50,000 towards duty within eight weeks. On such deposit, waiver of the balance duty and penalty was granted and recovery was stayed till final disposal of the appeal.

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