Decanting from tanker to smaller cylinders is not manufacture under Chapter 28 where it is treated as mere transfer, not repacking.

Off-loading hydrogen peroxide and acetic acid from tankers into smaller cylinders, even with labelling, was treated as mere decanting rather than repacking from bulk packs into retail packs. The Tribunal applied its earlier view that such transfer does not attract the deeming fiction of manufacture under Note 10 of Chapter 28 of the Central Excise Tariff Act, 1985. On that basis, the activity was regarded as not amounting to manufacture, and the appellants were held to have a prima facie case for unconditional stay.

---

---

Issues: Whether off-loading Hydrogen Peroxide and Acetic Acid from tankers into smaller cylinders, with labelling, amounts to repacking from bulk packing so as to constitute manufacture under Note 10 of Chapter 28 of the Central Excise Tariff Act, 1985.

Analysis: The Tribunal applied its earlier view that filling goods received in tankers into smaller containers does not amount to packing from bulk packs to retail packs for the purpose of the deeming fiction of manufacture. The activity was treated as mere decanting from tankers, and the agreed precedent was held to cover the issue in favour of the appellants.

Conclusion: The activity does not amount to manufacture under Note 10 of Chapter 28, and the appellants had a prima facie case for unconditional stay.

---