Mere sizing of imported timber does not defeat subsequent-sale conditions where commercial identity remains unchanged.

The process of cutting imported rough logs into smaller sawn timber did not breach the condition of subsequent sale under Notification No. 102/2007-Customs because the goods retained their commercial identity as timber and no new product came into existence. The reduction in length was done to comply with transportation limits, and the imported goods were later sold in the domestic market with applicable local taxes. On that basis, the notification condition was not violated and refund of SAD remained admissible.

---

---

Issues: Whether the process of cutting imported rough logs into smaller sawn timber before sale in the domestic market violated the condition of subsequent sale under Notification No. 102/2007-Customs dated 14.09.2007 and disentitled the importer to refund of SAD.

Analysis: The imported goods remained timber in commercial identity notwithstanding sawing into smaller pieces. The conversion did not bring into existence a new product or alter the essential identity of the article. The timber was also reduced in length because transportation rules did not permit carriage of logs beyond the prescribed limit. Since the goods were imported on payment of SAD and were later sold in the local market with applicable local taxes, the condition of subsequent sale was not breached merely because the logs were cut to size before sale.

Conclusion: The condition in the exemption notification was not violated, and refund of SAD remained admissible.

Ratio Decidendi: Mere cutting or sizing of imported timber, without change in its essential identity or emergence of a new product, does not defeat the condition of subsequent sale under the exemption notification.

---