Wet metric ton basis for Fe content ines nil export duty for iron ore fines under the exemption notification.

Fe content for export classification and duty on iron ore fines was required to be determined on a Wet Metric Ton basis, taking account of moisture content in the goods as presented for export. Applying the recognised conversion formula from dry basis to wet basis, the Tribunal found that the certificate produced for the shipment showed wet basis Fe content below 58%, bringing the goods within the nil-duty slab under the applicable exemption notification. The duty demand sustained on a dry basis could not stand, and the exported goods were not liable to export duty.

---

---

Issues: Whether the Fe content of iron ore fines exported for the purpose of classification and rate of export duty is to be determined on Wet Metric Ton basis or Dry Metric Ton basis, and whether the exported goods were entitled to nil export duty on the facts of the case.

Analysis: The issue stood governed by the principle that the Fe percentage for export classification is to be determined on the basis of the goods as presented for export, after giving effect to the moisture content. The Tribunal followed its earlier view that the universally recognised conversion formula must be applied to convert the dry basis Fe percentage into wet basis Fe percentage. On the certificate produced for the export in question, the wet basis Fe content worked out to below 58%, which brought the goods within the nil-duty slab under the relevant exemption notification. The Tribunal therefore held that the duty demand sustained on a dry basis could not stand.

Conclusion: The Fe content was required to be determined on Wet Metric Ton basis, and on that basis the exported goods were not liable to export duty under the applicable notification.

---