Manufacture by flavouring and repacking made snuff classifiable under 2404.60, with refund subject to unjust enrichment.

Snuff made from duty-paid raw snuff by adding flavour and repacking was treated as manufacture under Chapter Note 2 to Chapter 24, because labelling, relabelling, repacking from bulk to retail packs and similar treatment that makes goods marketable creates a new marketable commodity. On that basis, the product was classifiable under Chapter sub-heading 2404.60 rather than 2404.50. Any refund claim in respect of the duty remained subject to the doctrine of unjust enrichment.

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Issues: Whether snuff prepared from duty-paid raw snuff by adding flavour and repacking was classifiable under Chapter sub-heading 2404.60, and whether the refund claim was subject to the doctrine of unjust enrichment.

Analysis: The product had already suffered duty as raw snuff under Chapter sub-heading 2404.50, and the subsequent processing, flavouring, and repacking brought it within the scope of Chapter Note 2 to Chapter 24, which treats labelling, relabelling, repacking from bulk to retail packs, and similar treatment to render goods marketable as manufacture. On that basis, a new marketable commodity emerged and the correct classification was under Chapter sub-heading 2404.60. Since the relief sought was refund, the claim remained subject to the law of unjust enrichment.

Conclusion: The classification under Chapter sub-heading 2404.60 was upheld in favour of the assessee, and the refund was to be granted only subject to the doctrine of unjust enrichment.

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