Judgment
1. By stay application, the applicant has prayed that the condition of pre-deposit of duty and penalty be dispensed with and the recovery thereof be stayed till the decision of the appeal. Ld. Advocate appearing on behalf of the applicant has inter-alia submitted that the credit was debited when the defect goods were returned. This fact is not disputed by the Department. Besides, he has also relied upon the decision of this Tribunal reported in 2000 (119) ELT 595.2. Ld. JDR, Shri J. Singh has reiterated the last para of the impugned order wherein the reasons for the denial of the modvat credit are recorded.
3. After carefully examining the rival submissions, it is directed that the applicant shall deposit 25% of the amount of duty within six weeks from today. On compliance, recovery of the balance amount shall remain stayed during the pendency of the appeal. Failure to comply with the order shall automatically result in dismissal of appeal without any further notice. Appeal may be fixed for reporting compliance and regular hearing on 24.8.2001.