National Timbers Vs Union of India (Kerala High Court)
Kerala High Court in National Timbers vs Union of India addressed the issue of refunds of additional customs duty paid on timber imports from Myanmar and other foreign countries, focusing on the correct conversion factor to be applied for measuring timber. The dispute centered on converting the Hoppus Ton—a traditional Burmese unit of log volume—into cubic meters, the metric standard in India. Petitioners had declared timber imports using a conversion factor of 1 Hoppus ton equal to 1.416 cubic meters, whereas the Customs Department applied a factor of 1 Hoppus ton equal to 1.8027 cubic meters. Consequently, only partial refunds of additional customs duty were granted, with petitioners required to furnish provisional duty bonds to release the imported timber.
The petitioners filed writ petitions seeking full refund of the additional customs duty and challenging the requirement of provisional duty bonds, contending that the Department lacked jurisdiction to demand such bonds. They argued that their adopted conversion factor of 1.416 cubic meters per Hoppus ton was valid and consistent with the actual measurement of the imported timber. During the pendency of these petitions, the High Court issued an interim order noting discrepancies in conversion factors used by various customs houses—some applying 1.416 cubic meters and others 1.802 cubic meters per Hoppus ton. The Court directed the Central Board of Excise and Customs to clarify the applicable conversion factor nationwide.
