Labelling as deemed manufacture was contested, with interim relief granted and recovery stayed pending appeal.

Labelling is treated as deemed manufacture only where the relevant chapter notes are satisfied; on the facts discussed, affixing the assessee's name and address with the word "consignor" on drums, without indicating the product nature, was argued not to amount to manufacture absent repacking from bulk to retail containers. Existing Tribunal authority supporting that approach was treated as binding at the interim stage, and the duty demand and penalty were not required to be deposited pending appeal. Recovery was stayed and the appeal was directed to be heard out of turn.

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Issues: Whether the affixing of the assessee's name and address with the word "consignor" on drums, without indicating the nature of the product, amounted to labelling deemed to be manufacture, and whether recovery of the demanded duty and penalty should be stayed pending appeal.

Analysis: The dispute centred on the construction of the relevant chapter notes governing deemed manufacture by labelling. The assessee relied on existing Tribunal authority to contend that mere labelling, without repacking from bulk to retail containers, would not amount to manufacture. The Department sought reconsideration of that view, but the subsisting decision was treated as binding at the interim stage.

Outcome: Deposit of the duty demand and penalty was waived and recovery was stayed. The appeal was directed to be heard out of turn.

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