Manufacture of biris not proved by mere transport wrapping or unsupported labelling allegations; demand and penalty failed.

Repacking biris from bulk into retail packs constitutes manufacture only if the evidence shows a true bulk-to-retail conversion under Chapter 24; on the record, the goods were merely wrapped in packets and bags to prevent transport damage, so manufacture was not established. Alleged labelling or relabelling also failed because there was no supporting evidence. The demand and penalty were therefore unsustainable, and the appeal succeeded.

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Issues: Whether repacking biris from bulk into retail packs, or alleged labelling or relabelling, amounted to manufacture under Note 2 to Chapter 24 of the Schedule to the Central Excise Tariff Act, 1985.

Analysis: The appellant's statement showed only that biris were purchased in kattas and wrapped into packets and bags to prevent damage during transport. This did not establish repacking from bulk to retail so as to constitute manufacture. There was also no evidence that the appellant had labelled or relabelled the biris, and the finding on that aspect was unsupported by the record.

Conclusion: The demand and penalty were unsustainable and the appeal succeeded.

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