COLLECTOR OF CENTRAL EXCISE,GUNTUR vs ANDHRA SUGAR LTD.

The Supreme Court held that 'Acetic Anhydride', when supplied as a drug intermediate to drug manufacturers, is entitled to exemption from excise duty under Notification No. 55/75 CE and No. 62/78 CE. The Court emphasized that the term 'drug intermediate' should be interpreted broadly in light of the purpose of the exemption. The appeals by the Revenue were dismissed, affirming the Tribunal's decision that the goods were exempt from duty under Section 11B(2) of the Central Excise and Salt Act, 1944 and Section 35L(b) of the Act.