Modvat credit dispute on air-conditioning kits: Tribunal granted waiver of pre-deposit and stayed recovery pending appeal.

In proceedings on Modvat credit for air-conditioning kits used in manufacturing air-conditioned cars, the Tribunal found a prima facie case for waiver of pre-deposit of duty and penalty. On that basis, it granted waiver of the pre-deposit requirement and stayed recovery pending disposal of the appeals.

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Issues: Whether the appellants had made out a prima facie case for waiver of pre-deposit of duty and penalty in proceedings concerning availability of Modvat credit on air-conditioning kits used in manufacture of air-conditioned cars.

Outcome: The Tribunal granted waiver of pre-deposit and stayed recovery during the pendency of the appeals.

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