Pre-deposit waiver and stay of recovery granted where a prima facie claim to small scale exemption and Modvat credit was shown.

Pre-deposit of the disputed duty was dispensed with because the appellant showed a prima facie case for separate unit-wise treatment of its claim, including small scale exemption for one unit and Modvat credit for another. On that basis, recovery was stayed during the pendency of the appeal, reflecting that interim relief may be granted where the appellant demonstrates an arguable entitlement on the merits and the balance of convenience supports protection from coercive recovery.

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Issues: Whether pre-deposit of the disputed duty amount should be dispensed with and recovery stayed pending appeal, in view of the appellant's prima facie entitlement to claim small scale exemption for one unit and Modvat credit for another unit.

Outcome: The appellant was held to have a prima facie case and was granted waiver of pre-deposit and stay of recovery during the pendency of the appeal.

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