2024 (10) TMI 611 - AT - Customs

Finalization of assessment based on the Report which is available on Dry weight basis - Fe content has been taken as 63.86% which requires the appellant to pay export duty @ 300 per metric ton - HELD THAT - Time and again, it has been held that WMT content can be arrived at by using the formula given in the case of V.M. SALGAOCAR AND BROTHER PVT. LTD., MR. SHIVANAND V. SALGAONCAR. VERSUS THE ASSISTANT COMMISSIONER OF CUSTOMS (EXPORT) , GOA, DIRECTORATE OF REVENUE INTELLIGENCE, CENTRAL BOARD OF INDIRECT TAXES CUSTOMS MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NEW DELHI, UNION OF INDIA, MINISTRY OF FINANCE DEPARTMENT OF REVENUE 2022 (9) TMI 1306 - BOMBAY HIGH COURT , which has been affirmed by various Tribunals including this Tribunal. Reliance placed in M/S. NARBHERAM VISHRAM VERSUS COMMISSIONER OF C.G.S.T. AND CENTRAL EXCISE AND CUSTOMS, BHUBANESWAR 2024 (7) TMI 1080 - CESTAT KOLKATA wherein this Bench had accepted the submission of the Appellant and remanded the matter to the Adjudicating Authority to apply the formula to arrive at the moisture content as Fe content and finalize the assessment. Thus, matter remanded to the Adjudicating Authority to apply the formula to arrive at the moisture content and Fe content and finalize the assessment - appeal disposed off by way of remand.

Summary

Issues:
1. Finalization of assessment based on Fe content for Iron Ore fines exported.
2. Dispute regarding the basis of calculating Fe content for export duty payment.

Analysis:
1. The appellants exported Iron Ore fines during 2007-08 with provisional assessment. The Adjudicating Authority finalized the assessment based on a Report using Dry weight basis, resulting in an export duty payment requirement due to Fe content exceeding 62%.

2. The Chartered Accountant argues that Fe content for final assessment should be based on Wet Metric Ton (WMT) as consistently held by the Tribunal. Referring to a previous case law, he asserts that WMT content can be determined using a specific formula. A prior Final Order accepted a similar submission, remanding the matter for proper assessment based on WMT content.

3. The Tribunal, reviewing the previous Final Order, finds the issue identical and upholds the principle of determining Fe content based on WMT. Consequently, the Tribunal remands the case to the Adjudicating Authority to apply the formula for calculating moisture content and Fe content to finalize the assessment accurately.

4. Following the precedent and rationale set in the previous Final Order, the Tribunal directs the Adjudicating Authority to reevaluate the assessment based on the correct formula for determining moisture content and Fe content. The appeals are disposed of accordingly.

This judgment clarifies the methodology for calculating Fe content in Iron Ore fines for export duty payment, emphasizing the use of WMT basis as per established legal principles and previous Tribunal decisions. The Tribunal's decision to remand the matter ensures a fair and accurate assessment based on the correct formula, maintaining consistency with past rulings and legal interpretations.