Machine-assisted packing of biris in pre-printed wrappers does not amount to manufacture for tariff classification.

Mere machine-assisted packing of branded biris in pre-printed plastic wrappers does not, by itself, amount to manufacture with the aid of machine for classification under the disputed tariff entry. The relevant Chapter Note applied only where labeling, re-labelling, or repacking from bulk packs to retail packs was done with machine aid, and the facts showed no such repacking; the machine was used only to pack biri bundles in wrappers purchased from outside. The objection based on machine credit also failed because the credit had been reversed. On that basis, the departmental challenge to the classification was rejected and the assessee's classification was upheld.

---

---

Issues: Whether the branded biris, where only packing in pre-printed plastic wrappers was done with the aid of machine, were liable to be treated as manufactured with the aid of machine and classifiable under the disputed tariff entry.

Analysis: The relevant Chapter Note to Chapter 24 applied only where labeling, re-labeling, or repacking from bulk packs to retail packs with the aid of machine brought the product within the chapter note. On the facts found, there was no repacking from bulk packs to retail packs; the machine was used only for packing biri bundles in plastic wrappers purchased from outside. The objection regarding credit on the machine also did not survive, as the credit had been reversed. The Board circular relied upon supported the view that mere machine use for labels or wrappers would not by itself alter classification unless other manufacturing processes were carried out with the aid of machines.

Conclusion: The biris were not manufactured with the aid of machine and remained classifiable under the stated sub-heading as held by the lower appellate authority.

Final Conclusion: The departmental challenge to the classification failed, and the order in favour of the assessee was sustained.

Ratio Decidendi: Mere machine-assisted packing in pre-printed wrappers, without repacking from bulk to retail packs or other machine-assisted manufacturing processes, does not attract the chapter note treating the goods as manufactured with the aid of machine.

---