CESTAT Rejects Reclassification of Wooden Log as Department Fails to Prove Precise Cutting to Satisfy CTH Criteria

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) rejected an appeal by the Department seeking the reclassification of wooden logs imported by the appellant. The Department attempted to classify them under a different Custom Tariff Heading (CTH), which would attract higher duties. However, the Department failed to provide sufficient evidence that the wooden logs were cut in a specific manner that would qualify for the reclassification. The tribunal emphasized that the onus to prove the precise cutting rests with the Department. Since the evidence was inadequate, the tribunal ruled in favor of the appellant.