2017 (4) TMI 18 - AT - Customs

Classification of imported item - Linden Wood Slat - whether Linden Wood Slat imported by appellants for manufacture of pencils would be classifiable under CTH 4421.90 as Articles of Wood as claimed by them or under CTH 4408.90 as held by the lower authorities? - Held that - in order to cover the item under Heading 44.08, the wood should be either in sheet form, like sheets for plywood or veneer sheets or should be sawn length-wise, sliced or peeled. Here, the reference is made to planks of wood, cut and sliced logs, etc. and not to the items which are articles of wood, as in instant case wooden slats are used for manufacture of wooden pencils. Therefore, the Revenue s contention that the disputed wood slats would fall under CTH 4408.90 cannot be upheld - in ITC (HS) Classification also the disputed product is specifically mentioned under the description Pencils Slat . The Linden Wood Slats imported by the Appellants are correctly classifiable under S.H. No. 4421.90 of Customs Tariff Act - appeal allowed - decided in favor of appellant.

Summary

Issues: Classification of imported Linden Wood Slats under Customs Tariff Heading (CTH) 4421.90 or CTH 4408.90.

In this judgment, the appellants had imported Linden Wood Slats for the manufacture of wooden pencils, claiming classification under CTH 4421.90 and CETH 4410.90. However, the adjudicating authority classified the slats under CTH 4408.90 and CET 4404.90, attracting different duties. The main issue was whether the wood slats should be classified as Articles of Wood under CTH 4421.90 as claimed by the appellants or under CTH 4408.90 as held by the lower authorities.

The appellants argued that the wood slats were specifically processed for manufacturing wooden pencils, supported by a certificate from the overseas supplier. They referred to trade classifications and a judgment in a related case to support their claim. The Department contended that the products did not meet the criteria to be classified as pencil slats and referred to previous tribunal judgments to explain the manufacturing process required for pencil slats.

The Tribunal analyzed the submissions and records, noting that the disputed wood slats were not in sheet form but were specifically cut for manufacturing wooden pencils. They found that the lower authorities' classification under CTH 4408.90, which covers veneer sheets and wood sawn length-wise, did not apply to the wooden slats used for pencils. The Tribunal also highlighted the specific entry for Pencil Slats under Tariff Item 4421 90 40, aligning with the appellants' classification claim. They concluded that the wood slats were correctly classifiable under CTH 4421.90 as Articles of Wood for the exclusive use in manufacturing wooden pencils.

Therefore, the Tribunal allowed the appeal, setting aside the impugned orders and providing consequential relief to the appellants. The judgment was pronounced on 18-10-2016 by the Tribunal members M.V. Ravindran and Raju.