Modvat credit on endorsed invoices supported unconditional stay of duty demand pending appeal on merits.

Modvat credit on endorsed invoices under Notification 15/94 was treated as raising a strong prima facie case because the factual position on original invoices had not been properly examined and the appellate authority had reversed the lower authority without addressing those material facts. On that basis, unconditional stay of the duty demand was granted pending disposal of the appeal on merits.

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Issues: Whether unconditional stay of the duty demand should be granted pending disposal of the appeal on merits.

Analysis: The dispute concerned admissibility of Modvat credit on endorsed invoices under Notification 15/94 and whether the factual position regarding original invoices had been properly considered. The order notes that the Collector (Appeals) had reversed the Assistant Collector without examining the factual aspects, while the written submissions indicated material facts supporting the appellant's case. On that basis, the appellant was found to have a strong prima facie case.

Conclusion: Unconditional stay of the duty demand was granted till disposal of the appeal on merits, in favour of the appellant.

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