Modvat credit dispute: pending condonation request and scheme coverage supported waiver of pre-deposit on prima facie grounds.

A delayed Modvat declaration accompanied by a pending condonation request justified interim relief from pre-deposit where the request had not been properly considered and the inputs were duty paid with the final products covered by the Modvat scheme. On these facts, the tribunal found a prima facie case for waiver of pre-deposit and granted stay.

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Issues: Whether pre-deposit should be waived in a Modvat credit dispute where a condonation application for delayed declaration had been filed and the inputs and final products were otherwise covered by the Modvat scheme.

Analysis: The appellant had filed a declaration under Rule 57A and later filed a further declaration after a delay, along with an application for condonation. The order noted that the condonation request had not been duly dealt with before further action was taken. It was also undisputed that the inputs were duty paid and the final products were covered by the Modvat scheme. In these circumstances, a prima facie case existed for granting interim relief from pre-deposit.

Conclusion: The appellant was entitled to waiver of pre-deposit and stay was granted.

Ratio Decidendi: Where a delayed Modvat declaration is accompanied by a condonation request that has not been considered, and the inputs and final products are otherwise covered by the scheme, pre-deposit may be waived on a prima facie basis.

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