2001 (7) TMI 234 - AT - Central Excise

Summary

Issues involved: Determination of whether repacking of goods amounts to manufacture under Central Excise Act, 1944.

Summary:
1. The appellants were involved in repacking hydrogen peroxide and acetic acid received in bulk into smaller containers, which led to a dispute regarding whether this activity constituted manufacture under Chapter Notes 10 and 11 of the Central Excise Tariff Act, 1985.

2. The Commissioner held that the repacking activity amounted to manufacture, imposing Central Excise duty, penalty, and confiscation of goods. The appellants appealed, citing a Tribunal decision where a similar activity was deemed not to be manufacturing process.

3. The Tribunal noted the similarity in facts between the present case and the precedent, where filling ammonia gas into smaller containers was not considered manufacturing. The Revenue did not dispute the similarity of facts.

4. After considering the submissions, the Tribunal agreed that the appellants' activity did not amount to manufacture, following the precedent's ratio. Therefore, the appellants were not liable for duty or penalties.

5. Consequently, all appeals were allowed, and the Commissioner's order was set aside.