Labelling as manufacture under Chapter 24 sustained branded tobacco classification for marketable tobacco product.

Labelling that renders tobacco marketable to consumers constitutes manufacture under Chapter Note 2 to Chapter 24. On that basis, the product marked "SAI Bhaiaki Mishri" was treated as branded manufactured tobacco rather than branded unmanufactured tobacco for tariff classification under Heading 2404.90, and the classification adopted by the manufacturer was sustained. The note covers labelling or relabelling, repacking from bulk to retail packs, and similar treatment that makes goods marketable, so the Revenue's contrary classification challenge failed.

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Issues: Whether the product bearing the label "SAI Bhaiaki Mishri" was liable to classification as branded manufactured tobacco under Heading 2404.90, or as branded unmanufactured tobacco under Heading 2401.00, in light of Chapter Note 2 to Chapter 24.

Analysis: Chapter Note 2 to Chapter 24 treats labelling or relabelling of containers, repacking from bulk packs to retail packs, or any other treatment rendering the product marketable to the consumer as manufacture in relation to goods falling under the relevant headings of Chapter 24. Since the product carried the label "SAI Bhaiaki Mishri", the condition of deemed manufacture was satisfied. On that basis, the lower appellate authority's view that the product was branded manufactured tobacco was sustained.

Conclusion: The classification adopted by the manufacturer was upheld and the Revenue's challenge failed.

Final Conclusion: The dispute was resolved in favour of the assessee on the footing that labelling sufficient to make the product marketable amounted to manufacture for Chapter 24 classification purposes.

Ratio Decidendi: Where Chapter Note 2 to Chapter 24 applies, labelling that renders a product marketable constitutes manufacture for tariff classification purposes.

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