Interim stay on customs exemption refused where goods were not shown to fall outside the notified description.

Interim stay of an order granting exemption was refused because the Revenue did not establish a prima facie case against the classification of the goods as parts for repair of dredgers under Notification No. 21/2002-Cus. The tribunal found that the goods were not shown to fall outside the notified description, so suspension of the Commissioner (Appeals)'s order was not justified at the interim stage. The exemption relief therefore continued to operate, and the stay application was dismissed.

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Issues: Whether stay of operation of the order extending exemption under Notification No. 21/2002-Cus. dated 01-03-2002 was warranted.

Analysis: The goods were claimed to fall within the exemption for parts for repair of dredgers. The demand for stay was considered on a prima facie basis, and it was found that the goods were not shown to be outside the description of parts for repair of dredgers. In the absence of a prima facie case in favour of the Revenue, interim suspension of the Commissioner (Appeals)'s order was not justified.

Conclusion: Stay of the impugned order was refused and the application was dismissed, in favour of the assessee.

Final Conclusion: The exemption issue was not stayed at the interim stage, and the order granting relief remained operative.

Ratio Decidendi: Interim stay will not be granted where the applicant fails to establish a prima facie case against the benefit of exemption claimed for goods answering the notified description.

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