Argon gas refilling and manufacture: absent labeling or repacking into retail packs, the activity was not manufacture.

Refilling argon gas from tankers into cylinders was examined under Note 10 of Chapter 28 to determine whether the activity amounted to manufacture. The note was applied only to labeling or re-labeling of containers and repacking from bulk packs into retail packs; on the facts, there was no evidence that the cylinders were labeled or re-labeled, and some supplies were made in the buyer's own cylinders, which negated repacking. An interim stay order in another matter was treated as non-precedential. On that reasoning, refilling in the manner carried out did not constitute manufacture.

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Issues: Whether refilling argon gas from tankers into cylinders amounted to manufacture under Note 10 of Chapter 28 of the Central Excise Tariff Act, 1985.

Analysis: Note 10 applied only where there was labeling or re-labeling of containers and repacking from bulk packs to retail packs. On the facts found, there was no material showing that the respondent had labeled or re-labeled the cylinders. The record also showed that in some instances the gas was supplied in the buyer's own cylinders, which negatived the element of repacking from bulk packs to retail packs. Reliance on an interim stay order in another matter was held to be of no assistance, as such an order does not constitute precedent.

Conclusion: Refilling the gas in the manner carried out by the respondent did not amount to manufacture, and the Revenue's appeal failed.

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