Processed timber under export policy includes sawn planks cut into regular shapes, making them exportable subject to conditions.

Sawn wood planks were treated as processed timber for purposes of the Export and Import Policy because the timber had been cut into regular shapes and sizes by definite treatment. The court held that the policy's use of "processed" was not limited to the excise-law concept of manufacture or creation of a new commodity. As processed timber was separately permitted under the policy, the planks were exportable subject to the applicable terms and conditions, and refusal of export was unsustainable.

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Issues: Whether sawn wood planks are processed timber within the meaning of the Export and Import Policy and therefore exportable without a licence.

Analysis: The Policy placed wood and wood products in logs, timber and similar forms in the negative list, but separately permitted export of processed timber of all species subject to conditions. The term "processed" was not confined to "manufactured" in the excise sense. The Court distinguished the excise cases relied upon by the respondents, holding that the absence of a new commodity for excise purposes did not mean that timber had not been processed. Since the timber was cut into regular shapes and sizes by a definite treatment, it answered the ordinary meaning of processed timber.

Conclusion: Sawn planks are processed timber within Item 44 of Chapter XVI, Part V of the Export and Import Policy and are exportable subject to the applicable terms and conditions, in favour of the assessee.

Final Conclusion: The refusal to permit export was unsustainable, and the petitioner was entitled to export the sawn wood planks in accordance with the applicable policy conditions.

Ratio Decidendi: Where an export policy separately permits processed timber, timber sawn into regular shapes and sizes may qualify as processed timber even if it does not amount to manufacture under excise law.

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