Variety Lumbers P Ltd. Vs C.C.-Kandla (CESTAT Ahmedabad)
CESTAT Ahmedabad held that wood roughly squared and half squared and not further manufactured is classifiable under tariff heading 4403.99 of the Customs Tariff Act, 1975 and not under tariff heading 44.07.
Facts- The appellant filed ex-bond bill of entry for clearance of goods, namely, sawn New Zealand pine logs (bark off) by classifying the same under Chapter heading 4403. However, the lower authorities rejected classification under CTH 4403 and ordered for classification under CTH 4407 on the ground that “goods were perfect cuboids with standard cut length having extremely accurate dimensions with respect to its length, breadth and height.
Conclusion- To classify the goods under CTH 44.07, department has to show that goods were found cut in standard length with extremely accurate dimensions. Burden of proof is on the department, as it has sought to re-classify the product.
Tribunal, in the case of A.G. Daftry v. CC, Bombay – 1997, has held that where wood logs sawn on two sides were held to be classifiable as wood roughly squared and half squared but not further manufactured and falling under heading 4403.99 of the Customs Tariff Act, 1975. Further, Hon’ble Supreme Court has also in the case of Display or of Customs, Bombay v. Sony Enterprises – 1998 (98) E.L.T. 579 (S.C.) has held that the wood roughly squared and half squared and not further manufactured as classifiable under 44.03.
