Export duty on iron ore fines: whether declared FOB price is cum-duty and assessable value must be back-calculated; appeal dismissed

The dominant issue was whether export duty on iron ore fines was payable by treating the declared FOB price as a cum-duty price and back-calculating the assessable value. The Tribunal held that CBEC Circular No. 18/2008 clarifies that the FOB price declared by the exporter is to be treated as cum-duty value for determining assessable value by working backwards, and this position is settled by consistent CESTAT precedent. Applying the circular and prior rulings, the Tribunal upheld the duty computation method. The impugned order was sustained and the appeal was dismissed.

---

---

The appeal concerned whether the exporter of iron ore fines is liable to pay customs duty on the FOB value by treating the FOB as a "cum-duty value" or otherwise. The Tribunal held the question "is no longer res integra" and has been settled by multiple prior decisions "against the Appellant/Assessee and in favour of Revenue," including earlier rulings in *Sesa Goa Ltd* and *Essel Mining & Industries*. Although the appellant noted that appeals against those precedent rulings have been filed before the Supreme Court and "the same has been admitted for Hearing," the Tribunal applied binding coordinate-bench precedent. Accordingly, "following the precedent decisions of this Tribunal," it dismissed the appeal and upheld the impugned order, thereby affirming duty liability computed on the FOB value without granting cum-duty treatment.

---