Timber classification under customs tariff turned on whether coarse sawing moved wood from Heading 44.03 to Heading 44.07.

Timber that was only roughly squared or coarse sawn remained classifiable as wood in rough under Heading 44.03, because Heading 44.07 applies only where the wood has been sawn or otherwise worked to the extent contemplated by that entry. The tribunal found the revenue's reliance on the forest officer's opinion unreliable and unsupported by other evidence, so the higher-duty classification under Heading 44.07 was not proved. The impugned classification, duty demand, confiscation and penalty were set aside, and the appeal succeeded with consequential relief.

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Issues: Whether the imported timber was classifiable as wood in rough or roughly squared under Heading 44.03 of the Customs Tariff Act, 1975, or as sawn or chipped wood under Heading 44.07 of the Customs Tariff Act, 1975.

Analysis: Heading 44.03 covers wood in rough, including wood roughly squared, and the HSN notes indicate that such goods may have rough surfaces or bark traces. Heading 44.07 applies to wood sawn or chipped lengthwise or otherwise worked to the extent contemplated by that heading. On the evidence, the revenue's reliance on the forest officer's opinion was found unreliable because it was self-contradictory. No other material showed that the timber had been worked beyond coarse sawing or squaring so as to remove it from Heading 44.03. The burden lay on the revenue to establish classification under Heading 44.07, and that burden was not discharged.

Conclusion: The timber was held classifiable under Heading 44.03 and not under Heading 44.07, in favour of the assessee.

Final Conclusion: The impugned classification, duty demand, confiscation, and penalty were set aside and the appeal succeeded with consequential relief.

Ratio Decidendi: Timber that is only roughly squared or coarse sawn, without proof of further manufacture to the extent required for Heading 44.07, remains classifiable under Heading 44.03, and the revenue bears the burden of proving the higher-duty classification.

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