1996 (11) TMI 212 - AT - Customs

Summary

Issues:
Classification of imported wood logs under Customs Tariff Act, 1975, entitlement to benefit of Notification No. 160/88-Cus., mis-declaration by appellant, denial of benefit by Customs Authorities, appeal against Order of Additional Collector of Customs.

Detailed Analysis:

1. Classification and Benefit of Notification:
The appellant imported wood logs claimed to be wood roughly squared and half-squared under Heading 4403.99 of the Customs Tariff Act, 1975, seeking the benefit of Notification No. 160/88-Cus. The Customs Authorities contended that the logs were not as declared, leading to a show cause notice and subsequent Order by the Additional Collector denying the benefit but refraining from confiscation or penalties.

2. Appellant's Argument:
The appellant's representative argued that the logs, though sawn on two sides, were untouched on the rest, qualifying as wood roughly squared. A sample was presented, showing bark on two sides due to coarse sawing for transportation ease. Reference was made to CCCN Explanatory Notes and previous Tribunal decisions supporting the appellant's claim.

3. Respondent's Argument:
The respondent reiterated the Collector's reasoning, asserting that the logs had lost their identity as roughly shaped wood due to fine sawing on sides. The benefit of the Notification was rightly denied based on this premise.

4. Tribunal's Analysis and Decision:
Upon review, the Tribunal found that coarse sawing for transportation did not alter the logs' classification under Heading 44.03. The presence of bark on two sides indicated the logs remained roughly shaped wood. The Tribunal referenced previous decisions where similar issues were decided in favor of the appellants, emphasizing the importance of bark traces in defining roughly squared wood. Consequently, the Tribunal set aside the impugned Order, allowing the appeal and granting consequential relief.

In conclusion, the Tribunal's judgment clarified the classification of imported wood logs and upheld the appellant's entitlement to the benefit of Notification No. 160/88-Cus. based on the presence of bark on two sides and the logs being untouched on the rest, in line with previous Tribunal decisions and CCCN Explanatory Notes.