NATIONAL ORGANIC CHEMICAL INDUSTRIES LIMITED vs COLLECTOR OF CENTRAL EXCISE, BOMBAY

The Supreme Court interpreted the phrase 'derived from' in the context of Item 11AA of the Excise Tariff, determining that the products in question, ethylene, butylene, and propylene, were not directly derived from the refining of crude petroleum but from raw naphtha. The Court upheld the Tribunal's decision that these products should be classified under the residuary Item 68 instead of Item 11AA, thereby denying the appellants the benefit of the Exemption Notification. The ruling emphasized the necessity for products to be the immediate result of refining crude petroleum to qualify for the exemption.