Post-manufacturing packing of biris in aluminium foil was not manufacture, so higher excise duty could not apply.

Packing biris in aluminium foil with the aid of power was held not to amount to manufacture under Chapter Note 2 of Chapter 24 of the Central Excise Tariff Act, 1985, because the record did not show repacking from bulk to retail packs or any further treatment making the goods marketable. As the biris were already marketable when cleared and the foil wrapping was only a post-manufacturing activity, higher excise duty could not be levied on that basis. The issue was decided in favour of the assessee and against the Revenue.

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Issues: Whether packing biris in aluminium foil with the aid of power amounted to manufacture so as to attract duty at the higher rate.

Analysis: The activity of packing after manufacture was examined against Chapter Note 2 of Chapter 24 of the Central Excise Tariff Act, 1985. The record did not show repacking from bulk pack to retail pack or any further treatment rendering the goods marketable. The biris were already marketable as cleared, and the subsequent packing in aluminium foil was only a post-manufacturing activity. On that reasoning, the activity did not amount to manufacture and could not justify levy at the higher rate.

Conclusion: The issue was decided in favour of the assessee and against the Revenue; packing the biris in aluminium foil did not amount to manufacture for the purpose of higher duty.

Final Conclusion: The appeal succeeded because the disputed packing activity was held not to be a manufacturing process attracting the higher rate of excise duty.

Ratio Decidendi: A post-manufacturing packing activity does not constitute manufacture unless it involves repacking, further treatment, or other processing that renders the goods marketable within the statutory note.

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