Manufacture by relabeling and repacking supported a prima facie demand, while complete waiver of pre-deposit was refused.

Processing, relabeling and repacking imported AXXANOL-33C for sale as AXXANOL-33CD was treated, prima facie, as manufacture under Chapter Note 9 to Chapter 38 because such treatment renders the product marketable. The absence of the processed product in the registration certificate, together with the clearance pattern, supported a prima facie inference of suppression on limitation. As no substantiated financial hardship was shown, complete waiver of pre-deposit was not justified; the appellants were directed to deposit 25% of the duty, with waiver of the balance pending appeal.

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Issues: Whether the appellants were entitled to complete waiver of pre-deposit in a duty demand arising from processing, relabeling and repacking of imported goods, and whether the department had made out a prima facie case on merits and limitation.

Analysis: The goods imported as AXXANOL-33C were diluted in varying proportions, relabeled and repacked for marketing as AXXANOL-33CD. The process was found, prima facie, to fall within Chapter Note 9 to Chapter 38, which treats labeling, relabeling, repacking, or any other treatment to render the product marketable as manufacture. The absence of declaration of the processed product in the registration certificate, together with the manner of clearance, supported a prima facie view of suppression. On this basis, and in the absence of any substantiated plea of financial hardship, the appellants were not found entitled to complete waiver of pre-deposit.

Conclusion: Complete waiver of pre-deposit was declined, and the appellants were directed to deposit 25% of the duty amount within the stipulated time, with waiver of the balance during pendency of the appeal.

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