Modvat pre-deposit waiver granted after prima facie case was shown on intermediate products.

Under the Modvat provisions relating to intermediate products, the Tribunal found that the assessee had established a prima facie case on the disputed duty and penalty. On that basis, it dispensed with pre-deposit pending appeal and granted stay of recovery.

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Issues: Whether pre-deposit of the disputed duty and penalty amounts should be waived pending appeal, in view of the assessee's prima facie case under the Modvat provisions relating to intermediate products.

Outcome: The Tribunal found a prima facie case for dispensing with the pre-deposit and granted stay.

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