M/S. ASIAN PEROXIDES LTD. vs COMMNR. OF CENTRAL EXCISE, GUNTUR

The Supreme Court examined the eligibility of the appellant for exemption under Notification No. 8/97-CE dated 1.3.1997 concerning Hydrogen Peroxide manufactured in a 100% Export Oriented Unit (EOU). The Court upheld the CESTAT's decision that the materials used were raw materials and not consumables, thereby denying the exemption. The ruling clarified the definitions of 'raw material' and 'consumable' as per the EXIM Policy, emphasizing that items essential for the end product's manufacture qualify as raw materials under Section 3 of the Central Excise Act, 1944.