The CESTAT dismissed the Revenue's appeal regarding the ...

Export duty on iron ore fines: Test report at load port prevails over CRCL for iron content determination.

December 18, 2024

Case Laws     Customs     AT

The CESTAT dismissed the Revenue's appeal regarding the determination of export duty on exported iron ore fines. The Tribunal held that the iron content, prior to the amendment effective May 1, 2022, must be calculated on a wet basis following the principles established by the Bombay High Court and affirmed by the Supreme Court. The report from the Central Revenue Control Laboratory (CRCL), Kolkata, pertained to the dry form and was deemed irrelevant. The Tribunal ruled that the test report from the NABL-accredited agency at the load port should prevail over the CRCL report for determining the final iron content and transaction value as per the terms of the contract with the foreign buyer. The Customs officers cannot change the transaction value or the stipulated test report. The CRCL report cannot be used for levying export duty, and there were no allegations of fraud or misdeclaration. The Tribunal upheld the Commissioner (Appeals)'s order, finding no infirmity, and dismissed the Revenue's appeal.

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