Statutory sticker on imported chocolates is not manufacture where it does not amount to labelling or relabelling.

Affixing a statutory sticker on imported chocolates showing the importer's name, address and maximum retail price did not amount to manufacture under the deeming provision in Chapter 18. The Tribunal held that merely pasting a sticker to satisfy packing requirements is neither labelling nor relabelling, especially where the goods were already marketable before the sticker was applied. It followed earlier decisions applying the same principle under similar tariff notes and distinguished the Revenue's contrary precedent on facts. The demand of duty and penalty could not be sustained.

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Issues: Whether affixing stickers on imported chocolates showing the importer's name, address and maximum retail price amounts to manufacture under Note 3 to Chapter 18 of the Central Excise Tariff Act.

Analysis: The Tribunal followed its earlier decisions holding that merely pasting a sticker to comply with statutory packing requirements does not amount to labelling or relabelling and therefore does not constitute deemed manufacture. It noted that the imported chocolates were already marketable before the sticker was affixed and that the reasoning applied to identical deeming provisions in the tariff notes. The contrary precedent relied upon by the Revenue was distinguished on facts.

Conclusion: Affixing the sticker did not amount to manufacture and the demand of duty and penalty could not be sustained.

Ratio Decidendi: Mere affixing of a statutory sticker on imported goods, without replacing or altering an existing label, is not labelling or relabelling and does not amount to manufacture under a deeming provision.

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