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TMI Blog1996 (5) TMI 147X X X X Extracts X X X X X X X X Extracts X X X X ..... llants imported oak wood casks in CKD form and claimed assessment thereof under Item 68 and claimed exemption from countervailing duty in terms of Notification No. 48/79-Cus., dated 1-3-1979. The department alleged that since the goods imported in CKD condition appears to satisfy the criterion of improved wood as defined under Item 16B of the Central Excise Tariff and were therefore, liable to pay countervailing duty at the rate of 20% and 5% CVD as SED. Accordingly a show cause notice was issued and the case was adjudged against the appellants herein. 3. Shri Atul Nanda, learned Counsel for the appellants submits that what they had imported was Oak wood casks in CKD condition and that note under Item 16B does speak of improved wood and d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efined. He submitted that a perusal of the process undergone for construction of barrel could be termed as physical process used in the manufacture of barrel. The learned SDR submitted that Encyclopaedia Britannica inter alia provides that Barrel large bulging cylinder container of sturdy construction traditionally made from wooden staves and wooden or metal hoops. According to the 1st century-AD Roman historian Pliny the Elder, the ancient craft of barrel making, also called cooperage, was invented by the inhabitants of the Alpine valleys. Wooden barrels are now used mainly for whisky and beer. Stack barrels, made to hold dry products, may be made of pine of soft wood and do not require precise workmanship. Tight barrels, made to hold liq ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... excess of that needed to ensure a good bond) and which has thereby acquired density or hardness together with improved mechanical strength or resistance to chemical or electrical agencies." The learned SDR submitted that when this requirement is examined vis-a-vis process undertaken by the wood for making barrel it would be clear that the wood can be easily termed as improved wood. Oak wood casks imported in CKD condition were nothing but improved wood and that lower authorities have held that countervailing duty at the rate of 20% and 5% CVD as SED was rightly levied and collected on the imported goods. 5. Heard the submissions of both sides. We find that the short point for determination before us is whether process undertaken for con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pressure of hoop is applied for holding the bend on the barrel, so the staves are under considerable stress. The barrels are subjected to the process of crozing. After firing, the barrel is crozed, that is, the chamfer is cut on the ends of the staves, and the groove cut to take the barrel heads. The admitted position is that the goods imported were in CKD condition that is fully manufactured barrels were further separated into individual small pieces. All these processes described above even if we say that the goods imported by the appellants were subjected to only those processes described in the Manual on the construction, maintenance and of the barrel then these processes can be termed as physical processes. 7. Having regard to the ab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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