2006 (10) TMI 290 - AT - Central Excise

Summary

Issues: Classification of repacked ink in syringes under Chapter Headings 96.12 or 32.15 of CETA, 1985

Detailed Analysis:
1. Issue: The primary issue in this appeal was to determine whether the process of repacking duty paid ink in a syringe for dispensing ink on printing ribbons and cartridges constitutes a manufacturing process leading to classification under Chapter Headings 96.12 or 32.15 of the schedule to the Central Excise Tariff Act, 1985.

2. Court Proceedings: The Commissioner (Appeals) had classified the repacked product under CET sub-heading 3215.90, asserting that the process amounted to manufacture. The department contended that the product should be classified under Chapter Heading 96.12. The appellants argued that their process did not amount to manufacture.

3. Analysis of Process: The appellants' process involved purchasing printing ink in bulk, repacking it into syringes to create an Inkjet Refill Kit under the brand "Abee Fill." This kit comprised two separate items - ink and syringe - packed together for dispensation at the point of use. The product was distinct in the market, different in name, character, and use from the original ink and syringe, meeting the criteria of manufacture.

4. Judgment: The Tribunal found that the process undertaken by the appellants indeed amounted to manufacture, upholding the Commissioner (Appeals)'s order and dismissing the appeal. The Revenue did not contest the classification under CET sub-heading 3215.90, and the appellants did not claim classification under Chapter Heading 96.12, as they disputed the manufacturing aspect of their process.

5. Conclusion: The Tribunal's decision confirmed that the repacking of ink in syringes by the appellants constituted a manufacturing process, leading to the classification of the product under the relevant sub-heading. The judgment clarified the distinction between the original components and the final product, emphasizing the transformative nature of the repacking process in creating a new marketable commodity.