1996 (5) TMI 147

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....s. 2. The facts of the case in brief are that the appellants imported oak wood casks in CKD form and claimed assessment thereof under Item 68 and claimed exemption from countervailing duty in terms of Notification No. 48/79-Cus., dated 1-3-1979. The department alleged that since the goods imported in CKD condition appears to satisfy the criterion of improved wood as defined under Item 16B of the Central Excise Tariff and were therefore, liable to pay countervailing duty at the rate of 20% and 5% CVD as SED. Accordingly a show cause notice was issued and the case was adjudged against the appellants herein. 3. Shri Atul Nanda, learned Counsel for the appellants submits that what they had imported was Oak wood casks in CKD cond....

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....edia Britannica wherein process of manufacture of barrel was elaborately defined. He submitted that a perusal of the process undergone for construction of barrel could be termed as physical process used in the manufacture of barrel. The learned SDR submitted that Encyclopaedia Britannica inter alia provides that "Barrel large bulging cylinder container of sturdy construction traditionally made from wooden staves and wooden or metal hoops. According to the 1st century-AD Roman historian Pliny the Elder, the ancient craft of barrel making, also called cooperage, was invented by the inhabitants of the Alpine valleys. Wooden barrels are now used mainly for whisky and beer. Stack barrels, made to hold dry products, may be made of pine of soft wo....

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....r physical treatment (being in case of layers bonded together, treatment in excess of that needed to ensure a good bond) and which has thereby acquired density or hardness together with improved mechanical strength or resistance to chemical or electrical agencies." The learned SDR submitted that when this requirement is examined vis-a-vis process undertaken by the wood for making barrel it would be clear that the wood can be easily termed as improved wood. Oak wood casks imported in CKD condition were nothing but improved wood and that lower authorities have held that countervailing duty at the rate of 20% and 5% CVD as SED was rightly levied and collected on the imported goods. 5. Heard the submissions of both sides. We find tha....