M/S. VANASTHALI TEXTILES INDS. LTD. vs COMMNR. OF CENTRAL EXCISE

The Supreme Court addressed the applicability of Notification No. 8/97-CE regarding duty exemptions for a 100% export oriented undertaking (EOU). The Court held that the imported sizing material, Carboxymethyle Cellulose, qualifies as a consumable under the EXIM Policy and does not constitute raw material, thus allowing the appellant to benefit from the notification. The Court overturned the CEGAT's decision that denied the exemption based on the classification of the imported material, emphasizing the definition of consumables and their role in the manufacturing process.