M/S Vanasthali Textiles Industries Ltd vs Commissioner Of Central ...

The Supreme Court addressed the applicability of Notification No. 8/97-CE concerning the duty exemption for goods sold in the Domestic Tariff Area by a 100% export-oriented undertaking (EOU). The Court held that the imported sizing material, Carboxymethyle Cellulose, is classified as a consumable rather than a raw material, thus allowing the appellant to claim the exemption under the Notification. The judgment reversed the CEGAT's decision, emphasizing that the definition of 'consumable' supports the appellant's position, and the benefit of the Notification cannot be denied based on the use of imported consumables.