Repacking and labelling bulk oil may amount to manufacture, so full pre-deposit waiver was refused.

Repacking bulk oil into retail packs and labelling with the brand name was treated as prima facie satisfying the ingredients of Note 4 to Chapter 15 of the Central Excise Tariff Act, because the activity involved more than mere transfer of liquid from tankers into containers. The cited precedent on simple transfer was distinguished on that basis. Complete waiver of pre-deposit was therefore refused, and the applicant was directed to deposit part of the duty while waiver and stay operated for the balance pending appeal.

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Issues: Whether the applicant made out a strong prima facie case for complete waiver of pre-deposit in a dispute concerning whether repacking and labelling of bulk oil into retail packs amounted to manufacture under Note 4 to Chapter 15 of the Schedule to the Central Excise Tariff Act, 1985.

Analysis: The activity involved not merely filling bulk goods into smaller containers but also repacking from tankers into retail packs and labelling with the brand name. On a prima facie view, this distinguished the relied-upon precedent concerning mere transfer of liquid from tankers into cylinders. In that backdrop, the authority found that the statutory ingredients of Note 4 to Chapter 15 were prima facie satisfied and that no case for total waiver was made out.

Conclusion: Total waiver of pre-deposit was declined. The applicant was directed to deposit a part of the duty, with waiver and stay granted for the balance pending appeal.

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