Modvat credit dispute over original invoices led to waiver of pre-deposit and stay of recovery pending appeal.

Where Modvat credit on original invoices under Rule 57G(2A) was disputed, and Tribunal views on the point were already conflicting with the matter referred to a larger Bench, the case was treated as fit for interim protection pending final disposal of the appeal. On that basis, pre-deposit of the disputed duty demand was dispensed with and recovery was stayed during the pendency of the appeal.

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Issues: Whether pre-deposit of the disputed duty demand should be dispensed with and recovery stayed pending appeal where Modvat credit was taken on original invoices in the context of a dispute under Rule 57G(2A).

Analysis: The validity of taking credit on original invoices for the relevant period was the subject of conflicting Tribunal views, and the conflict had already been referred to a larger Bench. In these circumstances, the matter was treated as one warranting interim protection pending final adjudication of the appeal.

Conclusion: Pre-deposit was dispensed with and recovery of the disputed amount was stayed during the pendency of the appeal.

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