Modvat credit on explosives and furnace oil invoices supported waiver of pre-deposit and stay of recovery.

Explosives used in blasting limestone were treated as eligible inputs for Modvat credit, relying on prior Tribunal decisions, and the invoices for furnace oil were accepted as duty-paying documents even though the supplying depot was unregistered. On that basis, the applicants were found to have a strong prima facie case for interim relief. The Tribunal dispensed with pre-deposit and stayed recovery of duty during the pendency of the appeals.

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Issues: Whether the applicants had made out a prima facie case for waiver of pre-deposit and stay of recovery in respect of the demand relating to Modvat credit on explosives used in blasting limestone and furnace oil supplied through an unregistered depot.

Analysis: The Tribunal noted that explosives had already been held in earlier decisions to be inputs eligible for credit. It also accepted the contention that there was no requirement for the depot of the manufacturer supplying furnace oil to be registered for the invoices to serve as acceptable duty-paying documents, the issue being supported by prior Tribunal decisions. On that basis, the applicants were found to have a strong prima facie case for interim relief.

Conclusion: The requirement of pre-deposit was dispensed with and recovery of duty was stayed during the pendency of the appeals.

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