Actual manufacturer status turns on principal-to-principal relationship or whether the job worker is a dummy unit. Whether the supplier of raw materials or the job worker is the actual manufacturer for exemption under Notification No.175/86 depends on the legal relationship and factual matrix: if the relationship is principal-to-principal the job worker is the actual manufacturer; if the job worker is established as a dummy unit or mere hired labour under the terms of agreement, the raw material supplier will be treated as the manufacturer.