Cenvat credit reversal on final product exemption: interim stay refused for lack of a strong prima facie case.

Cenvat credit reversal on exemption of the final product was held not to justify interim interference with the Commissioner (Appeals)'s order. The Tribunal found that the Revenue had not established a strong prima facie case for stay, and therefore declined to disturb the finding that the credit need not be reversed or treated as lapsed merely because the final product became exempt. The Revenue's application for interim stay was rejected.

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Issues: Whether the Revenue was entitled to interim stay of the Commissioner (Appeals)'s order directing that Cenvat credit need not be reversed or treated as lapsed on exemption of the final product.

Analysis: The Tribunal noted that the Revenue had not made out a strong prima facie case for interim interference. The challenge related to reversal of Cenvat credit and alleged lapse of credit following exemption of the final product, but the Tribunal found no sufficient ground to grant stay at the interim stage.

Conclusion: Interim stay was declined and the Revenue's application was rejected.

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