TaxTMI 
TaxTMI 
2024 (9) TMI 1554
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.... 2. Department prepared a panchanama dated 13.04.2016 and took photographs of the goods and detained the same on the ground of misdeclaration and mis-classification. 2.1. According to department, goods were not roughly squared logs but were of standard cut length with extremely accurate dimensions. 2.2. Shri Bhupendra Chaturvedi, Authorized person of the appellant, inter alia, clarified in his statement before the department dated 11.05.2016 that the goods would be further planked, only one side is cut, remaining three sides are showing sap wood & rounding in natural condition; that the straightening was done for ease of transportation & removal of rotten and node portion of the logs; that the logs required further sawing for obtaining accurate dimentions. 3. The lower authorities rejected classification under CTH 4403 and ordered for classification under CTH 4407 on the ground that "goods were perfect cuboids with standard cut length having extremely accurate dimensions with respect to its length, breadth and height 4. It was submitted by the party to the lower authorities that while classifying the goods under CTH 4407 they have ignored the criteria laid down in HSN explanato....
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....ted as follows: i) Goods were not found to be "roughly squared logs as declared in the bills of entry but were found to be of standard cut length with extremely accurate dimensions". ii) All the logs were perfect cuboids having accurate dimensions with respect to length, breadth and height. iii) Around 10% of logs showed presence of bark traces. iv) Photographs of goods were taken in presence of panchas, Custom Broker and Custom officers. (These photographs have been scanned and reproduced in adjudication order passed by Ld. Additional Commissioner placed at page 25 to 27 of appeal memo). The description thus given by the Panchas as per (i) above was as per expressions borrowed from the H.S.N. 8.1. Department on other hand is seeking to rely on the statement of Shri. Raju Thaneshwar Chand C.H.A stating that dimensions were extremely accurate. 8.2 However, during inquiry, statement of Shri Bhupendra Chaturvedi, Authorized Representative of appellant was recorded under Section 108 of Customs Act,1962 on 11.05.2016, wherein, he inter alia stated that: i) Cutting is not proper; logs are roughly squared; it needed further sawing to get accurate dimension. ii) Logs were cu....
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....that are scanned and reproduced on page 25 to 27 of impugned order reveal that the goods are having dimensions of cuboids but it cannot be considered to be of extremely accurate dimensions, as is the requirement of the note. The terms used by Panchnama of "goods being were not found to be squared logs, but were found to be of standard cut lengths with extremely accurate dimensions" are as per H.S.N. Panchnama also indicates that 10% logs showed presence of bark traces. It was indicated that dimensions were not extremely accurate. Further the photos on records, as under also do not reveal 'extremely' accurate dimensions. * Photo for reference are reproduced below: 10.1 Further Para 7 of the order passed by Ld. Commissioner (Appeals) is reproduced below for the ease of reference (page 27 of appeal memo) reads as follows:- "7 As per HSN explanatory notes of CTH 44.07 it is mentioned that: "With a few exceptions, this heading covers all wood and timber, of any length but of a thickness exceeding 6 mm, sawn or chipped along with the general direction of the grain or cut by slicing or peeling. Such wood and timber includes town beams, planks, flitches, boards, laths, etc. and pr....
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....would fall under 44.07. The question essentially becomes one of evidence. We find that in the case of Hanuman Goel & Co. v. CC, Visakhapatnam - 1994 (69) E.L.T. 715 (Tribunal) it has been observed in Para 19 that sap wood is outer life of the trees. The said sap wood unless treated gets decayed and for the purposes of transportation wood logs to the saw mills the sap wood and the outer chips are removed either by sawing by means of axe or adze or by coarse sawing to form wood of roughly rectangular. It has been further observed by the Tribunal that explanatory notes for wood sawn under heading 44.03 clearly state that the wood and timber falling under this heading would have been sawn or chipped along with the general direction of the grain or cut by slicing or peeling. The wood is obtained by the use of chipping machines and which has been chipped to extremely accurate dimensions - a process which results in a surface better than that obtained by sawing and thereby renders subsequent planing unnecessary. 9. In the instant case we find that the opinion of the Range Officer given by him on 5-2-1998 which in any case was not conclusive has been changed by him on crossexamination. ....