Wet metric ton basis governs iron ore export duty, keeping the consignment below the duty threshold.

Export duty on iron ore fines must be assessed on wet metric ton basis, not dry metric ton basis, under the applicable circular. On the facts stated, the entire shipment, treated as one consignment, yielded Fe content of 57.48% on WMT basis, which remained below the 58% threshold for export duty. The argument that the shipment had been artificially split did not change the duty position once the correct WMT basis was applied. The consignment was therefore not liable to customs duty, and the corresponding demand and penalties could not be sustained.

---

---

Issues: Whether the Fe content of exported iron ore fines was required to be determined on wet metric ton basis and, on that basis, whether the consignment was liable to customs duty when the export was treated as a single consignment.

Analysis: The applicable board circular clarifies that for charging export duty on iron ore, Fe content must be assessed on wet metric ton basis and not on dry metric ton basis. The material on record showed that the goods, if treated as one consignment, yielded Fe content of 57.48% on WMT basis. That figure was below the 58% threshold attracting export duty. The challenge based on artificial splitting of the shipment did not alter the duty position once the entire export was assessed on the correct WMT basis.

Conclusion: The consignment was not liable to customs duty and the demand, as well as the consequential penalties, could not be sustained.

---