Modvat credit on dealer invoices supported interim waiver of pre-deposit and stay of recovery where prima facie case was shown.

Dealer's invoices were treated as capable of supporting Modvat credit for interim purposes, because the scheme was intended to avoid the practical difficulty of producing manufacturers' invoices in every case and Notification 15/94 did not, on its face, require the dealer's invoice to be accompanied by the manufacturer's invoice. On that basis, and noting that a substantial amount had already been deposited, waiver of pre-deposit and stay of recovery were granted for the remaining duty demand and penalty.

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Issues: Whether the appellant was entitled to waiver of pre-deposit and stay of recovery in respect of the duty demand and penalty arising from denial of Modvat credit on dealer's invoices.

Analysis: The applicant had shown a strong prima facie case for interim relief. The object of allowing dealer's invoices for credit was to avoid the practical difficulty of producing manufacturer's invoices in every case. Notification 15/94 did not, on its face, require the dealer's invoice to be accompanied by the manufacturer's invoice. A substantial amount had already been deposited.

Conclusion: The remaining amount of duty and penalty was waived from pre-deposit and recovery of the same was stayed in favour of the appellant.

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