Emptying drums or barrels is not manufacture, so duty cannot be demanded merely on removal of contents.

Emptying drums or barrels after removal of their contents does not amount to manufacture for duty purposes, even where Modvat credit had been availed on the containers. The Tribunal noted that the Commissioner (Appeals) correctly followed earlier Tribunal decisions holding that such emptying is not a manufacturing process, and those decisions had not been stayed by the Supreme Court. On that basis, the Revenue's challenge was rejected and the view that no duty arose on mere emptying was sustained.

---

---

Issues: Whether emptying drums or barrels after removal of their contents, on which Modvat credit had been availed, amounts to manufacture so as to attract duty.

Analysis: The Tribunal noted that the Commissioner (Appeals) had followed earlier Tribunal decisions holding that mere emptying of drums or barrels does not amount to manufacture. It further noted that those decisions had not been stayed by the Supreme Court, and therefore there was no reason to disregard them.

Conclusion: Emptying drums or barrels does not amount to manufacture. The Commissioner (Appeals) was in following the earlier Tribunal decisions, and the Revenue's challenge failed.

---