Where something is completely and utterly awesome (originates from Peter Jackson's Chilli Sauce obsession in bo selecta)
Generic Person #5762897: "Dude, I got us tickets to Iron Maiden!"
Genric Person #4298689754676: "Mate, that's Chilli Sauce!"
Generic Person #98896176: "So, heard you made out with that hot chick the other day"
Generic Person #2658738: "Yeah, it was Chilli Sauce!"
Can be pretty much anything. From squirting sauce (the orginal use) to playing an awesome prank on someone.
Some guy(probably tubb): "Hey! You tripped me!"
Doug: "Mate, you just got sauced!"