2019 (1) TMI 833 - AT - Customs

Tribunal rules on assessable value of Iron Ore Fines and duty calculation criteria post-2009

The Tribunal decided in favor of the Revenue regarding the determination of the assessable value of Iron Ore Fines, ruling that duty should be assessed ... Valuation - determination of assessable value of export goods - Iron Ore Fines - Held that:- Tribunal had already decided the issue of determination of duty of export goods, namely, Iron Ore Fines, and observed that for the period after 1-1-2009, the said goods be assessed to duty adopting the FOB Price, in the case of M/S. SESA GOA LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, CUSTOMS & SERVICE TAX, BHUBANESWAR-I [2014 (4) TMI 658 - CESTAT KOLKATA] - Following the same, the said issue is decided in favor of the Revenue and against the Respondent. Whether duty be calculated on ‘Wet Weight’ basis, under which the Assessee/Respondent agreed to supply the goods to the overseas purchaser or on the transaction value of the goods on ‘Dry Weight’ basis for the period after 13-6-2008? - Held 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 - this issue is decided in favour of the assessee and against the Revenue. Decided partly in favor of Revenue. Issues involved:1. Determination of assessable value of export goods - Iron Ore Fines.2. Calculation of duty on 'Wet Weight' basis or 'Dry Weight' basis for export goods.Analysis:Issue 1: Determination of assessable value of export goods - Iron Ore FinesThe appeal involved a stay petition seeking to stay the operation of the Order-in-Appeal passed by the Commissioner of Customs (Appeals), Kolkata. The Tribunal considered two appeals against the Orders passed by the Commissioner of Customs (Appeals), Kolkata, related to the determination of the assessable value of Iron Ore Fines. The first issue was whether the assessable value should be based on the FOB price or as cum-duty value for goods exported after 1-1-2009. The Revenue argued in favor of adopting the FOB price as assessable value, citing previous Tribunal orders in their favor. The Tribunal noted that previous decisions favored assessing duty on Iron Ore Fines based on the FOB price for the period after 1-1-2009. Consequently, the Tribunal decided this issue in favor of the Revenue and against the Respondent.Issue 2: Calculation of duty on 'Wet Weight' basis or 'Dry Weight' basis for export goodsThe second issue involved determining whether duty should be calculated on 'Wet Weight' basis or 'Dry Weight' basis for goods exported after 13-6-2008. The Revenue contended that duty should be calculated on 'Wet Weight' basis, while the Assessee/Respondent argued for duty assessment based on 'Dry Weight' basis, as agreed upon with overseas purchasers. The Tribunal referred to a previous decision in favor of the Assessee/Respondent, where it was determined that duty on Iron Ore Fines should be assessed based on 'Dry Weight' criteria. Consequently, the Tribunal ruled in favor of the Assessee/Respondent and against the Revenue on this issue.In conclusion, the Tribunal disposed of the Revenue's appeals and stay petition based on the above decisions, with the operative part of the Order pronounced in the Court.