Timber Hoppus Ton conversion formula accepted for Special Additional Duty refund on domestic resale claims

For Special Additional Duty refund on imported timber logs later sold domestically with VAT paid, the issue was the correct conversion formula for translating Hoppus Ton into cubic metre. The Tribunal accepted the appellants' rate of 1 Hoppus Ton = 1.416 cubic metre, noting earlier decisions on the same issue and supporting material from Kerala commercial tax proceedings and the Forest Department. On that basis, the higher international formula of 1 Hoppus Ton = 1.8027 cubic metre could not be applied to reduce the refund claims.

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Issues: Whether the conversion formula adopted for translating timber quantities from Hoppus Ton into cubic metre for the purpose of Special Additional Duty refund was correct.

Analysis: The refund claims arose from import of timber logs on payment of Special Additional Duty and subsequent domestic sale on payment of VAT. The controversy was whether the appellant's conversion rate of 1 Hoppus Ton = 1.416 cubic metre could be rejected in favour of the international formula of 1 Hoppus Ton = 1.8027 cubic metre. The Tribunal noted that the same issue had already been decided in favour of importers in earlier matters. It also took note of the Kerala commercial tax proceedings and the Forest Department's communication, both of which supported the appellants' method and indicated that the quantity declared at import and the quantity sold did not materially differ on physical verification.

Conclusion: The conversion formula adopted by the appellants was accepted and the refund claims could not be reduced on the basis of the higher international formula.

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