Pre-deposit waiver in disputed Modvat credit matter limited to partial relief after financial hardship was considered.

A stay application concerning alleged irregular Modvat credit on disputed gate passes was considered against objections on limitation, disputed service of the adjudication order, and denial of access to records. The Tribunal held that the material on record did not justify full waiver of pre-deposit, although the appellant's financial hardship warranted partial relief. Total waiver was refused, and the appellant was directed to deposit Rs. 1 lakh within eight weeks, with waiver of the balance pre-deposit for hearing of the appeal.

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Issues: Whether the appellant was entitled to total waiver of pre-deposit of duty and penalty in the stay application.

Analysis: The demand arose from alleged irregular availment of Modvat credit on the strength of disputed gate passes. The order below had treated the appeal as time-barred, while the appellant disputed the service of the adjudication order and also complained of denial of access to records. On the merits of the stay request, the Tribunal found that, in view of the material on record, the case was not fit for full waiver, though financial hardship warranted relief to a limited extent.

Conclusion: Total waiver was refused and the appellant was directed to deposit Rs. 1 lakh within eight weeks, with waiver of the balance pre-deposit granted for hearing of the appeal.

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