Mere repacking of duty-paid goods into smaller containers does not amount to manufacture unless the tariff deems it so.

Mere repacking of duty-paid hydrogen peroxide and acetic acid from bulk tankers and carbuoys into smaller containers, with labels showing the manufacturer, contents, potency and the appellant's name, was treated as non-manufacturing activity. Applying the earlier Tribunal ruling on similar facts, the activity was held not to create a new product or amount to manufacture under excise law unless the tariff specifically deems repacking to be manufacture. As a result, duty and penalty were not leviable.

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Issues: Whether repacking hydrogen peroxide and acetic acid from bulk tankers and carbuoys into smaller containers with labels and stickers amounted to manufacture, and whether duty and penalty were leviable.

Analysis: The activity in question consisted of transferring the goods from bulk quantities into smaller packings and affixing labels showing the manufacturer, contents, potency and the appellant's name. The matter was treated as covered by the earlier Tribunal ruling on similar repacking activity, which had held that such filling or repacking from bulk containers into smaller containers does not amount to a manufacturing process and does not attract duty liability under the excise law. On that basis, the same legal approach was applied to the present facts.

Conclusion: The activity did not amount to manufacture, and the appellants were not liable to pay duty or suffer penalty.

Ratio Decidendi: Mere repacking of duty-paid goods from bulk containers into smaller containers, even with labeling, does not amount to manufacture unless the tariff deems such activity to be manufacture.

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