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2023 (8) TMI 323 - AT - CustomsValuation of export goods - enhancement of value - value of the goods determined by AO based on the price by adopting the wet metric ton weight of the Iron Ore find i.e. by including moisture content - Appellant submits that inspite of going through the Contract Copy with the overseas importer, still the Commissioner (Appeals) has held that the value should be as per wet weight. HELD THAT - This Tribunal in the case of COMMISSIONER OF CUSTOMS (PORT), KOLKATA VERSUS M/S. SESA GOA LTD. 2014 (8) TMI 213 - CESTAT KOLKATA has held the determination of export duty on the basis of dry weight or wet weight, in our opinion, is irrelevant as the duty to be computed on the value of the goods in dry weight condition, as agreed by the parties. This Tribunal in the case of COMMR. OF CUSTOMS (PORT) , KOLKATA VERSUS ESSEL MINING INDUSTRIES LTD. 2019 (1) TMI 833 - CESTAT KOLKATA has held We find that the assessment of export goods whether on Dry Weight or on Wet Weight basis, for the period after 13-6-2008, has been decided by this Tribunal in favour of the Assessee/Respondent, observing that the export goods namely, Iron Ore Fines, be assessed to duty, adopting the criteria of Dry Weight , as agreed to between the Assessee/Respondent and the overseas purchasers, vide Order Nos. FO/A/75192-75217/2014, dated 30-4-2014. Hence, this issue is decided in favour of the assessee and against the Revenue. The above decisions are squarely applicable in the present case also since no Stay has been granted by the Supreme Court in respect of the Appeal filed by the Revenue against Tribunals order in Sesa Goa case. Appeal allowed.
Issues involved:
The determination of the value of exported Iron Ore Fines based on wet metric ton weight, the application of P. N. 40/2008, and the interpretation of the contract terms with the overseas importer. Issue 1: Determination of value based on wet metric ton weight The Appellant, a company exporting Iron Ore Fines, contested the assessing officer's valuation method that included moisture content. The Commissioner (Appeals) upheld this valuation, citing the case of UOI Vs Gangadhar Narsingdas Agarwal. The Appellant argued that the contract with the overseas importer specified valuation based on dry weight only, referencing cases like Commr. of Customs (Port), Kolkata Vs Sesa Goa Ltd. The Tribunal noted the difference in context between the cited Supreme Court judgment and the present case, ultimately ruling in favor of the Appellant based on the contractual terms. Issue 2: Application of P. N. 40/2008 The assessing officer also enhanced the value of the goods in accordance with P. N. 40/2008 dated 04.08.2008. The Appellant challenged this enhancement, emphasizing the contractual agreement with the overseas importer for valuation based on dry weight. The Tribunal's decision in favor of the Appellant was supported by the absence of any dispute regarding the contractual terms specifying payment based on the dry metric weight of the iron ore. Issue 3: Interpretation of contract terms with overseas importer The crux of the dispute lay in the interpretation of the contract terms with the overseas importer, which clearly stipulated payment based on the dry metric weight of the iron ore. The Tribunal, relying on previous decisions such as Sesa Goa Ltd. and Essel Mining & Industries Ltd., affirmed the Appellant's position that the duty should be computed based on the value of the goods in dry weight condition as agreed upon in the contract. The Tribunal's decision to allow the Appeals filed by the Appellant was based on the contractual agreement and the absence of any stay granted against the Tribunal's previous orders in similar cases.
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