Manufacture and repacking of softy shake mix held insufficient to trigger duty absent a deeming Chapter Note.

Adding flavours to softy shake mix and repacking it into 200 ml containers did not constitute manufacture. The goods were already classifiable as dutiable under Tariff Heading 22.02, but in the absence of a relevant Chapter Note during the period treating repacking from bulk to retail packs as manufacture, the subsequent processing was not enough to create a fresh duty liability. The Revenue's appeal was rejected and the duty demand was not sustained.

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Issues: Whether adding flavours to softy shake mix and repacking it into 200 ml containers amounted to manufacture giving rise to duty liability.

Analysis: The goods were already held to be dutiable under Tariff Heading 22.02. In the absence of any Chapter Note during the relevant period treating repacking from bulk packs to retail packs as a process of manufacture, the subsequent activity of adding flavours and repacking could not by itself be characterised as manufacture.

Conclusion: The activity did not amount to manufacture and the Revenue's appeal was rejected.

Final Conclusion: The duty demand based on the alleged manufacturing activity was not sustained, and the assessee's position was upheld.

Ratio Decidendi: In the absence of an applicable chapter note deeming repacking from bulk to retail packs to be manufacture, mere addition of flavours and repacking does not constitute manufacture.

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