Re-labelling is not manufacture under the unamended tariff note, so duty, penalties and confiscation failed.

Mere re-labelling of glass and household cleaner containers by removing the original labels and affixing a fresh brand name did not amount to manufacture under Note 6 to Chapter 34 of the Central Excise Tariff Act, 1985, as it stood before the 1997 amendment. The Tribunal applied its earlier view in the same assessee's case and held that the unamended phrase "any other treatment to render the product marketable" did not extend to simple labelling or re-labelling. As the activity was outside the deeming provision, the connected duty demand, penalties and confiscation were unsustainable, and the appeals were allowed.

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Issues: Whether affixing a fresh brand label and re-labelling containers of glass and household cleaners amounted to manufacture under Note 6 to Chapter 34 of the Schedule to the Central Excise Tariff Act, 1985, and whether duty, penalty and confiscation could therefore be sustained.

Analysis: The Tribunal applied the earlier decision in the same assessee's case and held that, prior to the 1997 amendment, the expression "any other treatment to render the product marketable" did not cover mere labelling or re-labelling of containers. The process undertaken was limited to removing the original labels and affixing the brand name "COLIN", which did not bring the activity within the deeming provision then in force. As the manufacture finding failed, the connected duty demand, penalties and confiscation could not survive.

Conclusion: The process of re-labelling did not amount to manufacture under the unamended provision, and the demand, penalties and confiscation were unsustainable.

Final Conclusion: The appeals were allowed and the impugned order was set aside on the ground that the activity did not constitute manufacture under the relevant tariff note.

Ratio Decidendi: Mere re-labelling of containers, without the later specific statutory amendment bringing such activity within the deeming provision, does not amount to manufacture under the tariff note covering treatment to render goods marketable.

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