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of <h1>Iron ore fines with 57.48% Fe content exempt from differential customs duty under CTH 2601 1149</h1> CESTAT Kolkata ruled in favor of the appellant regarding differential customs duty on exported iron ore fines. The dispute centered on classification ... Demand of differential Customs duty - classification of exported iron ore fines under CTH 2601 1149 or not - mis-declaration of Fe content of the iron ore fines - HELD THAT:- On going through the fact that as the Fe content is to be calculated on WMT and as per the test reports of the goods in question which have not been disputed by either of the sides, the Fe content on WMT treating the whole consignment as one consignment works out to 57.48% which is less than 58%, therefore, it is held that the appellant is not liable to pay any duty on the export of the said consignment treating as single consignment. Conclusion - The Fe content of iron ore should be calculated on a WMT basis, considering the condition of the goods at the time of export. The impugned order is not sustainable in the eyes of law. Consequently, no penalty is imposable on the appellants - Appeal allowed. The judgment from the Appellate Tribunal CESTAT Kolkata involves the appellants challenging an order demanding differential Customs duty and imposing penalties based on the classification of exported iron ore fines under CTH 2601 1149. The core issue revolves around whether the appellants mis-declared the Fe content of the iron ore fines to evade Customs duty.Issues Presented and Considered:The primary legal question is whether the appellants correctly declared the Fe content of the exported iron ore fines and whether the classification under CTH 2601 1149 was appropriate. The Tribunal also considered whether the calculation of Fe content should be based on Wet Metric Ton (WMT) or Dry Metric Ton (DMT) basis, which affects the applicable Customs duty.Issue-Wise Detailed Analysis:Relevant Legal Framework and Precedents:The appellants relied on the Supreme Court decision in Gangadhar Narsinghdas Aggarwal, which supports the classification of iron ore based on Fe content in WMT. They also referenced CBEC Circular No. 04/2012-Cus, which advises that Fe content for Customs duty assessment should be determined on a WMT basis. Additionally, the appellants cited previous Tribunal decisions in similar cases that supported their position.Court's Interpretation and Reasoning:The Tribunal examined whether the appellants artificially split one consignment into multiple shipping bills to misrepresent the Fe content and evade duty. The Tribunal considered the legal precedents and the CBEC Circular, which emphasize that Fe content should be calculated on a WMT basis.Key Evidence and Findings:The Tribunal reviewed test reports indicating the Fe content of the iron ore fines. The reports showed varying Fe content percentages, but when calculated on a WMT basis, the overall Fe content was less than 58%, which is significant because iron ore with Fe content up to 58% is duty-free.Application of Law to Facts:The Tribunal applied the legal framework and precedents to the facts, determining that the Fe content should be calculated on a WMT basis. This calculation showed that the Fe content was below 58%, thus supporting the appellants' claim that no duty was owed.Treatment of Competing Arguments:The Tribunal considered the department's argument that the appellants split the consignment to evade duty. However, the Tribunal found that even if treated as a single consignment, the Fe content on a WMT basis was below 58%, negating the duty liability.Conclusions:The Tribunal concluded that the appellants did not owe any Customs duty on the consignment as the Fe content was below the threshold for duty imposition when calculated on a WMT basis. Consequently, the penalties imposed were also deemed unsustainable.Significant Holdings:The Tribunal held that the Fe content of iron ore fines should be determined on a WMT basis, aligning with the Supreme Court's decision and the CBEC Circular. This principle was crucial in determining the duty liability in this case.Core Principles Established:The judgment reinforces the principle that for Customs duty purposes, the Fe content of iron ore should be calculated on a WMT basis, considering the condition of the goods at the time of export.Final Determinations on Each Issue:The Tribunal set aside the impugned order, allowing the appeals and granting consequential relief to the appellants. The decision underscores the importance of adhering to established legal standards and guidelines in Customs duty assessments.
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