Exemption notification ambiguity over thickness criteria supported a prima facie case for stay and interim protection.

Ambiguity in an exemption notification's thickness criterion for plates, sheets, strips, skelp, hoops and flats can support interim relief where a later notification separately specifies the relevant condition for each item. The text indicates that such a later formulation may show the earlier entry did not clearly extend the same thickness requirement across all inputs, making the department's interpretation less certain. On that basis, a prima facie case was found for stay of the adjudication order and recovery, and interim protection was granted pending disposal before the Special Bench.

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Issues: (i) Whether the applicants had made out a prima facie case for stay of the operation of the adjudication order and recovery of duty, fine and penalty.

Analysis: The dispute turned on the construction of the exemption notification entry concerning the thickness criterion for plates, sheets, strips, skelp, hoops and flats. The wording of the later notification, which separately specified thickness for sheets, strips and flats, supported the applicants' contention that the earlier notification did not extend the thickness condition to all inputs in the same manner. On that basis, the applicants had shown a plausible case that the department had imported a criterion not clearly found in the earlier notification.

Conclusion: The applicants were held to have a prima facie case justifying stay of operation of the impugned order and stay of recovery.

Final Conclusion: Interim protection was granted to the applicants pending disposal before the Special Bench, as the appeal involved interpretation of the exemption notification.

Ratio Decidendi: Where the wording of an exemption notification is ambiguous and a later notification clarifies the scheme by separately stating the relevant condition for each item, a prima facie case for stay may be made out in favour of the assessee.

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