Fe content for iron ore export duty had to be assessed on Wet Metric Ton basis before 1 May 2022.

For export duty classification on Iron Ore Fines, Fe content for the relevant period before 1 May 2022 had to be determined on a Wet Metric Ton basis, taking account of moisture and other impurities. The earlier Supreme Court ruling and the Board circular governed that period, while the later statutory supplement providing for Dry Metric Ton calculation under Chapter 26 applied only from 1 May 2022 and did not apply retrospectively. Assessments made on a Dry Metric Ton basis for the pre-1 May 2022 period were therefore incorrect and could not be sustained.

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Issues: Whether, for determining the classification and rate of export duty on Iron Ore Fines, the Fe content had to be calculated on Wet Metric Ton basis or Dry Metric Ton basis for the relevant period prior to 1 May 2022.

Analysis: The governing position for the relevant period was taken from the earlier Supreme Court ruling and the Board circular, both of which treated Fe content in exported iron ore as determinable on Wet Metric Ton basis by accounting for moisture and other impurities. The later statutory supplement introducing Dry Metric Ton calculation for Chapter 26 was noted as operative only from 1 May 2022 and therefore not applicable to the assessments in dispute. Since the assessments had proceeded on a Dry Metric Ton basis for a pre-1 May 2022 period, the adoption of that method was held to be incorrect.

Conclusion: The determination of Fe content was required to be made on Wet Metric Ton basis for the relevant assessments, and the impugned assessment orders could not be sustained.

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