Rs. 1/- p/mt Cess on imported Iron ore pellet

[Asked by Guest]

Respected Sir,

We are manufacture of Sponge Iron and we are import iron ore pellet many times. and we also discharge duty on Iron and Steel made from DR Grade Iron Ore Pellets imported from time to time. Customs Authorities recovered Cess on such imports @ Re. 1/- per M. Ton and also recover Custom Cess (Calculate including ₹ 1/- p/mt).

so custom cess leviable on this case?

[PAWAN KUMAR]

Dear Sir,

As per my view the customs cess @ ₹ 1/- Per M.T. is to be levied on iron ore pellet as per mineral policy of iron ore in India March2008.

[YAGAY and SUN]

Dear Alpesh,CESS ON IRON OREUnder the Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines Labour WelfareCess Act, 1976 the Central Government has fixed the rate of rupees one per metric tonne as therate at which the duty of excise and duty of customs on all Iron ore produced in any mine, shallbe levied and collected as cess.[Minisrty of Labour Notification G.S.R. 680 (E) dated 1.08.1990]We hope this reply would be helpful in your matter.Regards

Team YAGAYand SUN

(Managementand Indirect Tax Consultants)

Dear Sir,

My Question is Custom cess calculate including Cess @Rs. 1/- p/mt?

Example -

100 mt. import iron ore pellet

BCD 1000/-

CVD 1000/-

CESS 100/- (Rs. 1/- P/mt)

Total 2100/-

Cus. Cess 2% 42/-

Cus. Cess 1% 21/-

please advice.

AI Summary

Labour welfare cess inclusion in the customs duty base may affect calculation of customs cess on imported iron ore pellets.
The issue is whether the prescribed labour welfare cess of one rupee per metric tonne on imported iron ore pellets is included in the base for calculating subsequent percentage based customs cesses. The statutory per tonne cess is levied on imports of iron ore pellets; the question asks if percentage customs cesses must be computed on duties and totals that already incorporate that per tonne levy.