M/S MERIDIAN INDUSTRIES LTD. vs COMMR.OF CENTRAL EXCISE

The Supreme Court upheld the decision of the Commissioner of Central Excise, affirming that the appellant, M/s. Meridian Industries Ltd., was entitled to the benefit of Notification No.8/97-C.E. dated 01.03.1997 despite using imported wax in the manufacturing process. The Court clarified that the wax acted merely as a lubricant and did not constitute a raw material as it was a temporary coating that was removed during production. The ruling emphasized that consumables used in capital goods should not be classified as raw materials under the relevant excise laws, thus supporting the appellant's claim for exemption from normal excise duty.