2018 (10) TMI 1815 - AT - Customs

Demand of Differential Duty - assessment of shipping bills - adjudicating authority assessed the shipping bills finally demanding differential duty from the respondent - Revenue is contesting the findings on the ground that the report of National Metallurgical Lab, Chennai has indicated Fe content as more than 62% as also the Dy. Chief Chemist report - HELD THAT - The first appellate authority has considered all the aspects of the case and came to a conclusion that CRCL report needs to be relied upon. There are no reason to interfere with detailed and reasoned findings given by the first appellate authority - appeal dismissed.

Summary

Issues:
Demand of export duty on export of iron ore based on conflicting test reports.

Analysis:
The appeal was filed by the revenue against an Order-in-Appeal regarding the demand of export duty on iron ore exports. The respondents initially filed shipping bills with exemption of export duty based on Fe content being more than 62%. However, conflicting test reports from different laboratories created uncertainty. The Dy. Chief Chemist found Fe content to be more than 62%, but a retest by CRCL, New Delhi showed less than 62%. Subsequent testing by National Metallurgical Lab, Chennai indicated Fe content above 62%. The adjudicating authority finally demanded differential duty, leading to an appeal where the Order-in-Original was reversed. The revenue contested this reversal, citing the reports from National Metallurgical Lab and the Dy. Chief Chemist. The first appellate authority relied on the CRCL report, emphasizing the need to consider multiple test reports. The authority highlighted the importance of natural justice principles and cited a judgment from the Hon’ble CESTAT, Bangalore, emphasizing the need to consider multiple test reports for a fair decision. The first appellate authority concluded that the appellants had a prima facie case to set aside the impugned order due to the majority of test reports showing Fe content below 62%.

The Tribunal, after considering the submissions and records, upheld the findings of the first appellate authority. The Tribunal agreed with the detailed and reasoned analysis of the first appellate authority, emphasizing the importance of considering all test reports to determine the Fe content accurately. The Tribunal found no reason to interfere with the decision of the first appellate authority. Consequently, the impugned order was deemed correct and legal, leading to the rejection of the appeal. The judgment highlighted the significance of relying on multiple test reports and ensuring fairness in decision-making processes based on established legal principles and precedents.