Repacking products isn't manufacturing if no new product is created. Tribunal decision upheld. Appeal dismissed.

The Supreme Court held that repacking a product from bulk to consumer form does not constitute manufacturing as there is no creation of a new product, only a change in the mode of application. The Tribunal's decision was upheld, stating that the repacking activity did not amount to manufacturing. The appeal was dismissed without costs, and the respondent was ordered a refund of duty paid under protest.

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Issues:
Whether repacking from bulk to consumer form constitutes manufacture.

Analysis:
The Supreme Court judgment involved the question of whether repacking a product from bulk to a form suitable for consumers constitutes manufacturing. The Deputy Chief Chemist's report stated that the composition of the product remained the same before and after repacking, indicating that no new product was created. The report highlighted that the basic composition and use of the original material did not change, only the mode of application was altered. The show cause notice did not allege any value addition to the product, focusing solely on whether the repacking activity amounted to manufacturing.

The Tribunal, as a fact-finding body, concluded that repacking the product did not qualify as manufacturing. The Supreme Court upheld the Tribunal's decision, emphasizing that the finding was based on facts and did not warrant interference. Consequently, the appeal was dismissed, with no costs imposed on either party. Additionally, the judgment ordered the refund of duty paid under protest to the respondent.

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