TaxTMI 
TaxTMI 
2024 (3) TMI 1408
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....manded from the appellants classifying the goods under CTH 2601 1149 and imposing penalties on both the appellants. 2. The facts of the case are that the appellant No. 1 exported iron ore fines. An intelligence was gathered and developed by DRI that the appellant was evading Customs duty by mis-declaring and suppressing the Fe content of iron ore fines exported through Paradip Port, India. Therefore, the investigation was conducted at the premises of the appellant and it was found that the appellant has categorically exported one single consignment of 5226 WMT of iron ore fines having 61.47% Fe content classifiable under Tariff Heading 26011149, but artificially splitted the export consignment into three Shipping Bills showing diffe....
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....Ts. He further referred on the CBEC Circular No. 04/2012-Cus dated 17.02.2012 wherein it has been advised that for the purpose of charging Customs duty assessment of iron ore for determination of Fe content shall be made in WMT basis. He also relied on the decision of this Tribunal in the case of Bagadiya Brothers Private Limited vs. Commissioner of Customs (Port), Kolkata vide Final Order No. 76645/2023 dated 15.09.2023. He also relied on the decision of the Tribunal in the case of Jindal Steel & Power Limited vide Final Order No. 77496/2023 dated 30.10.2023. 5. He further submitted that in appellants' own case in respect of another export, the Ld.Commissioner issued three show cause notices on the identical allegation th....
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....ipping Bills with an intention to evade payment of Customs duty by declaring that one Shipping Bill is having Fe content less than 58% and other Shipping Bills are having Fe content more than 58%, it is held that it is only one consignment. 11. Contention of the ld.adjudicating authority and the Fe content as per DMT works out to 62.47%, which is more than 58%, therefore, the appellant is liable to pay duty on whole of the consignment @ 30% and differential duty was demanded. If the contention of the ld.adjudicating authority is considered and found to be correct, i.e. it is only one consignment. The Fe content is to be calculated based Wet MT and Dry MT as held by this Tribunal in the case of Jindal Steel & Power Ltd. (supra). Relevant ....
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....ron Ore Fines has to be determined on Wet Metric Ton basis and not Dry Metric Ton basis. Fe content on Dry Metric Ton basis certified by CRCL Report cannot be relied upon for levy of export duty. We agree with the submission of the Respondent. The Board Circular clearly specifies that the Fe content is to be determined on WMT basis. On applying the standard industry formula for determining Fe content on Wet Metric Ton (WMT) basis, after considering Fe Content on Dry Metric Ton (DMT) basis and Moisture content determined by CRCL, the Fe content works out to be below 58%, and therefore, in the impugned order he held that export duty is not applicable on the goods exported by the Respondent. We find that the department has not adduced any reas....
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....el for the appellants was that it is not possible by a physical analysis to determine the iron ore contents in moist lumpy iron ore or moist iron are fines, because suck moist iron ore fines and moist lampy iron ore has to be dried for finding out the iron contents. It was urged by him that this is the only method of analysis accepted by the Indian Standard Institute, and hence the result of that analysis must be made applicable directly or straightway to determine the percentage of iron contents in the iron ore exported by the petitioners. In our view, the submission has no merit whatever. Although it is true, as submitted by Mr. Rege, that moist lumpy iron ore and moist iron ore fines have to be dried for the purpose of determining the ir....
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....tents, and to maintain uniformity all over the custom houses, it is clarified that for the purpose of charging of export duty the assessment of Iron ore for determination of Fe contents shall be made on Wet Metric Ton (WMT) basis which in other words mean deducting the weight of impurities (inclusive of moisture) out of the total weight/Gross Weight to arrive at Net Fe contents." 19. Thus, By following the decisions and Board Circular cited above, we hold that Fe content is to be determined on Wet Metric Ton basis. We observe that the adjudicating authority has rightly followed the decision of the Hon'ble Supreme Court and the Circular issued by Board on this issue and dropped the proceedings. Accordingly, we find no infirmity in t....