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of <h1>Judge Grants Stay on Duty Pre-Deposit Based on Public Sector Delivery Challans</h1> The judge allowed the Stay Petition, granting dispensation from pre-depositing duty amount based on Modvat credit availed using delivery challans from a ... Stay/Dispensation of pre-deposit Issues:Seeking dispensation with pre-deposit of duty amount based on Modvat credit availed using delivery challans from a public sector undertaking.Analysis:The applicant firm sought dispensation from pre-depositing duty amount totaling Rs. 3,03,971.27 (basic) and Rs. 15,198.53 (special) by utilizing Modvat credit based on delivery challans from M/s. IISCO, a unit of SAIL. The firm argued that the delivery challans, treated as gate passes for Modvat credit, were proper duty-paying documents accepted by authorities. However, the credit was disallowed due to the lack of details correlating the material with duty-paying documents, despite certificates from M/s. SAIL confirming duty payment. The consultant referenced relevant case laws emphasizing public sector undertakings' certificates as duty-paying documents, equating delivery challans to gate passes. The firm sought unconditional stay of the duty demand.Resisting the arguments, the JDR highlighted that the delivery challans lacked specific details linking the material to original duty payment gate passes, rendering them incomplete for Modvat credit entitlement. The JDR's stance implied that the absence of such details on the delivery challans precluded the firm from availing Modvat credit.Upon careful consideration, the judge noted the Instructions by the Board equating delivery challans from public sector undertakings to gate passes and deeming certificates on such challans confirming duty payment as sufficient for Modvat credit. The judge questioned the department's insistence on including original gate pass details in the delivery challans if they were already treated as gate passes for Modvat credit purposes. Consequently, the judge found merit in the consultant's arguments and unconditionally allowed the Stay Petition, siding with the firm's position on the Modvat credit issue.
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