Repacking coconut oil is not manufacture, and retail packing alone cannot shift classification to a hair-preparation heading.

Repacking coconut oil from bulk containers into smaller retail packs did not amount to manufacture because the oil retained the same name, character and use, with no new product created by packing alone. Classification under Sub-heading 3305.99 was also rejected because the packs lacked labels, literature or other indications showing cosmetic or hair-preparation use, and there was no evidence of additives or processing that converted the oil into a Chapter 33 preparation. Mere retail packing or advertisement was insufficient to move the product from Chapter 15 to Chapter 33. The classification and duty demand therefore failed on merits.

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Issues: (i) Whether repacking coconut oil from bulk packs into small retail containers amounts to manufacture; (ii) whether the repacked coconut oil is classifiable under Sub-heading 3305.99 as preparations for use on the hair.

Issue (i): Whether repacking coconut oil from bulk packs into small retail containers amounts to manufacture.

Analysis: Coconut oil in bulk was accepted to fall under Heading 15.03 as a fixed vegetable oil. The process undertaken was only repacking into smaller containers, without any change in name, character or use. The Court noted that coconut oil was already usable as hair oil even in bulk form, and repacking alone did not create a new product. On that basis, no manufacture arose merely from repacking.

Conclusion: Repacking the coconut oil did not amount to manufacture.

Issue (ii): Whether the repacked coconut oil is classifiable under Sub-heading 3305.99 as preparations for use on the hair.

Analysis: For classification under Chapter 33, the Court applied the requirement that the product must satisfy the relevant chapter notes, including the condition of being put up with labels, literature or indications showing use as cosmetics or toilet preparations, or being specially prepared for such use. The impugned packs did not bear such labels or indications, and there was no proof of additives or processing that converted the oil into a preparation for use on hair. The mere fact of advertisement or retail packing was held insufficient to shift classification from Chapter 15 to Chapter 33.

Conclusion: The repacked coconut oil was not classifiable under Sub-heading 3305.99.

Final Conclusion: The impugned order was set aside and both appeals succeeded, with the classification and duty demand failing on merits.

Ratio Decidendi: Repacking a product that remains the same in name, character and use does not amount to manufacture, and classification under a cosmetics/hair-preparation heading cannot rest merely on retail packing or advertisements unless the statutory chapter conditions are satisfied.

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