Cus - Linden Wood Slats for manufacture of wooden pencils are Articles of Wood and correctly classifiable under S.H. No. 4421.90 of Customs Tariff: CESTAT
By TIOL News Service
MUMBAI, NOV 01, 2016: THIS is an appeal filed in the year 2006.
The appellants had imported Linden Wood Slats (Wood Pencil Slats) of various sizes claiming classification under Customs TH 4421.90 and CE TH 4410.90 as Articles of Wood, chargeable to 35% basic customs duty and Nil rate of CVD.
As against this, the adjudicating authority classified the same under CTH 4408.90 and CETH 4404.90, attracting 35% BCD, 10% surcharge, 16% CVD and 4% SAD, which has been upheld by the Commissioner (Appeals).
Aggrieved, the appellant is before the CESTAT.
The appellant submitted that the wood slats have been cut to specific sizes having specific thickness, width and length from exclusively and specifically processed wood and the same have become Articles of Wood for exclusive and sole use for the manufacture of wooden pencils and, therefore, the same would find appropriate parentage under S.H. No. 4421.90 of CTH; that the fact that the disputed slats are for manufacture of wooden pencils was also certified by the overseas supplier, M/s. Shanghai, wherein the supplier had also clarified that the wood slats are also known as Pencil Slat as per BTN No. 4421; that as per Revised Indian Trade Classification, the said product imported has been mentioned under 4421 90 13; under ITC (HS) classification of Export & Import Items (as on 1.4.2000) the product is specifically mentioned under the description -Pencils Slat', which supports the case of the Appellant. [Hindustan Pencils (P) Ltd. relied upon].
The AR submitted that the disputed products are not pencil slatsbecause, to treat the product as pencil slat, the same has to undergo various processes and for explaining the process of manufacture of pencil slats, the AR placed reliance on the Tribunal judgments in the case of Lion Pencils Pvt Ltd. and Hindustan Pencils (P) Ltd. (supra).
The Bench observed -
+ We find that S.H. No. 4408.90, under which the lower authorities have classified the impugned product, covers Veneer Sheets and Sheets for Plywood (whether or not sliced) and other wood sawn lengthwise, sliced or peeled.
+ In order to cover the items under Heading 44.08,the wood should be either in sheet form like sheets for plywood or veneer sheets or should be sawn length wise, sliced or peeled.
+ Here, the reference is made to planks of wood, cut and sliced logs, etc. and not to the items which are articles of wood, as in instant case wooden slats are used for manufacture of wooden pencils. Therefore, we are of the view that the Revenue's contention that the disputed wood slats would fall under CTH 4408.90 cannot be upheld.
+ Assistant Commissioner in the Order-in-Original has accepted that the goods imported are Wooden Slat used for manufacture of pencils and the same has not been disputed by the Revenue.
+ We further find that with the alignment of CTA/CETA with the HSN, there has been a specific entry for Pencil Slats under 4421 90 40,which also supports the present case of the Appellants. We also find that the wood slats in dispute have been cut to the specific sizes having specific thickness, width and length from exclusively and specifically processed wood. We also find that in ITC (HS) Classification also the disputed product is specifically mentioned under the description -Pencil Slat'.
Holding that the Linden Wood Slats imported by the Appellants are correctly classifiable under S.H.No.4421.90 of Customs Tariff Act, the impugned Orders were set aside with consequential relief.
(See 2016-TIOL-2831-CESTAT-MUM)
