Modvat credit reversal stayed pending reference, with credit frozen and unavailable for utilisation until further orders.

Interim protection was granted against implementation of a Tribunal order directing reversal of Modvat credit, pending disposal of the reference application before the High Court. The request was allowed because similar matters had already been referred and stayed, and the balance of convenience favoured preserving the status quo. The Modvat credit was directed to remain frozen and could not be utilised until further orders on the reference application.

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Issues: Whether the operation of the Tribunal's final order directing reversal of Modvat credit should be stayed pending disposal of the reference application before the High Court.

Analysis: The application concerned interim protection against implementation of the Tribunal's earlier order. The request was considered in light of the fact that similar matters had been referred to the High Court and stayed pending reference disposal. The balance of convenience was found to be in favour of the applicants, and the credit amount was directed to remain frozen so that it could not be utilised until further orders.

Conclusion: The operation of the Tribunal's final order was stayed, subject to the condition that the Modvat credit remained frozen and was not utilised until further orders on the reference application.

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