Exemption on first clearances could not be finally decided in stay proceedings, so refund was kept in abeyance.

The applicability of Notification No. 1/2006-S.T. and the assessee's eligibility to claim exemption on first clearances required examination on merits at final hearing, so the issue could not be conclusively decided in stay proceedings. The refund direction was therefore kept in abeyance pending disposal of the appeal, and the stay application was allowed in favour of Revenue.

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Issues: Whether the impugned order directing refund should be stayed pending final disposal of the appeal, having regard to the applicability of Notification No. 1/2006-S.T. and the claimed exemption on first clearances.

Analysis: The issue required detailed examination on merits at the stage of final hearing. Since the question concerned the applicability of the exemption and the respondent's eligibility to claim the benefit, the Tribunal held that the matter could not be finally examined in the stay proceedings. The refund direction in the impugned order was therefore required to be kept in abeyance until disposal of the appeal.

Conclusion: The stay application was allowed and the impugned order was stayed, in favour of Revenue.

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