Prima facie Modvat credit review led to partial waiver of pre-deposit, with recovery stayed on compliance.

Prima facie assessment governed the request for waiver of pre-deposit in a Modvat credit dispute involving material handling equipment, a lightning arrestor and GI steel structure. Relief was found arguable for the material handling equipment, while the claims for the lightning arrestor and GI steel structure required closer scrutiny of the goods and supporting evidence. Partial waiver of pre-deposit was granted, subject to a deposit of Rs. 20,000 within eight weeks; on compliance, the balance duty demand was waived and recovery stayed during the appeal.

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Issues: Waiver of pre-deposit in respect of denial of Modvat credit on material handling equipment, Lightning Arrestor and GI steel structure.

Analysis: The application was considered on a prima facie assessment of the claim for Modvat credit. Relief was found to be arguable in relation to the material handling equipment, while the claims regarding the Lightning Arrestor and GI steel structure required detailed examination of the nature of the goods and the evidence.

Outcome: Partial waiver of pre-deposit was granted. The applicant was directed to deposit Rs. 20,000 within eight weeks, and on such deposit the balance duty demand was waived and recovery stayed during pendency of the appeal.

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