Waiver of pre-deposit and stay granted where substantial deposit was made and the Modvat credit objection lacked prima facie merit.

Waiver of pre-deposit and stay of recovery were granted where the applicants had already deposited a substantial amount and their challenge to the denial of Modvat credit was found prima facie unsustainable. The Tribunal held that these factors justified dispensing with the pre-deposit requirement and suspending recovery of the duty demand and penalty.

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Issues: Whether the applicants were entitled to waiver of pre-deposit and stay of recovery of the duty demand and penalty.

Analysis: The amount already deposited was substantial, and the objection to the denial of Modvat credit was found not to be well founded prima facie. On that basis, the Tribunal found sufficient ground to dispense with the pre-deposit requirement and grant stay.

Conclusion: Waiver of pre-deposit and stay of recovery were granted in favour of the applicants.

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