Export duty on iron ore fines must be assessed by Wet Metric Ton Fe content, not Dry Metric Ton basis.

Export duty on iron ore fines depended on Fe content measured on Wet Metric Ton basis rather than Dry Metric Ton basis where the authorised inspection certificates supported the lower Wet Metric Ton percentage. The Tribunal followed its earlier decisions on the same controversy and held that, on the facts, the Fe content was below 62% on Wet Metric Ton basis, so assessment on Dry Metric Ton basis in the impugned orders was not justified. As a result, export duty was confined to the lower rate of Rs. 50 per MT and the higher duty demand could not be sustained.

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Issues: Whether export duty on iron ore fines was payable on the basis of Fe content determined on Wet Metric Ton basis or Dry Metric Ton basis.

Analysis: The appeals arose from a common controversy concerning the proper basis for determining Fe content in iron ore fines for export duty. The Tribunal noted that the same issue had already been decided in earlier matters involving similar facts. On the facts of the present cases, the Fe content on Wet Metric Ton basis was below 62%, and the certificates of the authorised inspection agency supported that position. The Tribunal held that, in such circumstances, duty was not to be assessed on the Dry Metric Ton basis adopted in the impugned orders.

Conclusion: Export duty was payable at the lower rate of Rs. 50 per MT on the basis of Fe content determined on Wet Metric Ton basis, and the higher duty demand could not be sustained.

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