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Issues involved: Challenge to remand decision by Commissioner (Appeals) and demand of export duty on iron ore.
Challenge to remand decision: The present appeal challenges the order of the Commissioner (Appeals) remanding the decision communicated by the Assistant Commissioner of Customs House. The appeal contends that the Commissioner (Appeals) lacked the power of remand. Demand of export duty on iron ore: The impugned order approved the demand of export duty on iron ore, imposed from 1-3-2007, despite the let export order for the consignment being issued on 28-2-2007. The appellants exported 49000 MTs of iron ore under Shipping Bill No. 7100325 dated 27-2-2007, with the let export order issued on 28-2-2007. The consignment was loaded on the vessel for shipment before 00.00 hrs on 1st March, 2007. The Assistant Commissioner demanded export duty on the entire consignment along with interest for the delay in payment. Legal Analysis: Section 16 of the Customs Act, 1962, specifies the date for determination of rate of duty and tariff valuation of export goods. The Act states that the rate of duty applicable to goods entered for export shall be the rate in force on the date the proper officer permits clearance and loading for exportation. In this case, the let export order was issued on 28-2-2007 when no export duty was leviable on iron ore. The levy was introduced from 1-3-2007, making the demand of duty not in accordance with the law. Decision: The Tribunal vacated the orders of the lower authorities and allowed the appeal, as the demand of export duty was deemed not in accordance with the law due to the discrepancy in the dates of the let export order and the introduction of the duty levy. Note: The operative portion of the order was pronounced in court at the conclusion of the hearing.
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