Mere repacking and relabelling of micronutrients does not amount to manufacture where no deeming provision applies.

Mere repacking and relabelling of imported micronutrients, marketed as "Librel", did not amount to manufacture where the goods remained the same Chapter 31 product and the tariff entry contained no deeming fiction treating such activity as manufacture. The Tribunal noted that the process was carried out only on a job work basis and that the statutory basis for levy was therefore absent. As a result, the duty demand, penalty and interest were held unsustainable, and the impugned orders were set aside with consequential relief.

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Issues: Whether repacking and relabelling micronutrients imported as bulk goods and marketed as "Librel" amounted to manufacture and attracted duty and penalty.

Analysis: The product was the same micronutrient already classified in the context of import as falling under Chapter 31. The Tribunal relied on the settled classification of the imported product and noted that Chapter 31 did not contain a deeming fiction treating repacking or relabelling as manufacture. Since the activity undertaken was only repacking and relabelling on job work basis, the statutory basis for treating the process as manufacture was absent.

Conclusion: The process did not amount to manufacture and the duty demand, penalty and interest were not sustainable.

Final Conclusion: The impugned orders were set aside and the appeals were allowed with consequential relief.

Ratio Decidendi: Where the applicable tariff entry contains no deeming provision, mere repacking and relabelling of goods does not amount to manufacture.

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