Procter & Gamble Hygiene & Health Care ... vs Commissioner Of Central Excise,Bhopal

The Supreme Court, in this case, addressed the applicability of excise duty on the repacking of detergent powder under the Central Excise Act, 1944, specifically Section 35-L(b) and Section 11A(1). The Court held that the cost of repacking into smaller sachets did not constitute 'manufacture' prior to the amendment on 1.3.1994, thus the duty was not applicable for the period in question. The appeal was allowed, ruling that the assessee was not liable for the differential duty claimed by the department.