Wax used for producing cotton yarn should be treated as Raw Material – SC

CA Urvashi Porwal Brief of the Case In the case of M/S. MERIDIAN INDUSTRIES LTD. V/s COMMISSIONER OF CENTRAL EXCISE, it was held that if a particular item participates in or is required for a manufacturing process, but does not form part of the end product and instead it is specifically or totally consumed during a manufacturing process, the same would be treated as ‘consumables’.   On the other hand, ‘raw material’, inter alia, includes any materials or goods that are required for the manufacturing process for a manufacturer. Hence the wax used in producing cotton ...