Iron Ore Exports and Refund: Assessing 'Fe' Content on WMT Basis for Duty Calculation

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....ticle analyzes a recent decision by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) regarding the determination of iron ('Fe') content in iron ore exports for the purpose of calculating applicable customs duty. The core legal question presented revolves around whether the 'Fe' content should be calculated on a Dry Metric Ton (DMT) or Wet Metric Ton (WMT) basis, whic....

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....tly charged at Rs. 300/- per MT. COURT DISCUSSIONS AND FINDINGS The CESTAT observed that the Deputy Commissioner had finalized the provisional assessments on a DMT basis, contrary to the Supreme Court's decision in Gangadhar Narsingdas and the CBEC Circular. The Tribunal extensively analyzed precedents from various High Courts and its own decisions, which consistently held that 'Fe' ....

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.... / 100 Where Fe is the percentage of iron content on a dry basis, and M is the moisture content in the sample. Applying this formula, the CESTAT found that the appellant was liable to pay customs duty at Rs. 50/- per MT instead of Rs. 300/- per MT. Consequently, the appellant was entitled to a refund of the excess duty paid during the export. DOCTRINAL ANALYSIS The CESTAT's decision reinfo....