By TIOL News Service

MUMBAI, DEC 01, 2017: THE appellant is engaged in repacking/re-labeling of Plastic Gadget under the brand name Easecap which is used by the consumer by inserting capsule for inhaling. The product repacked and relabeled by the appellant does not contain any medicament. The case of the department is that the product "Easehaler"is classifiable under Chapter 30.03 in terms of Chapter Note 6 of Chapter 30 which provides that repacking and relabeling of the product amounts to manufacture and liable for duty.

The CESTAT had granted a stay in the matter and the same was reported by us as 2008-TIOL-546-CESTAT-MUM.

The appeal was heard recently.

The appellant submitted that they were doing repacking and relabeling of plastic container under the brand of ‘Easehaler' and such plastic container is packed and sold in the market. Furthermore, since the said plastic gadget did not contain any medicament, therefore, same is not classifiable under Chapter 30.03 and resultantly,Chapter 6 of Chapter 30 would not apply inasmuch as repacking of plastic gadget does not amount to manufacture and not liable for duty.

The AR reiterated the findings of the impugned order.

The Bench observed -

"4. …, it is found that the product is plastic gadget though it is used for inhaling medicament but that is by the consumer. However while clearing the plastic gadget i.e. easehaler it is only in the form of plastic container which does not contain any medicament therefore product per say (sic) is not medicament therefore same is not classifiable under Chapter 30.03 and Chapter Note 6 of Chapter 30, in case product is relabeled and repacked shall not apply. The repacking and relabeling of plastic gadget does not amount to manufacture as similar chapter note is not available for product of Chapter 39 where the plastic gadgets stand classifiable. As per our above observations, the impugned order is not sustainable, hence the same is set aside…."

The Appeal was allowed.

(See 2017-TIOL-4221-CESTAT-MUM)