2026 (2) TMI 674

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....ming the Fe content to be less than 58 %. On the ground that the Fe content is required to be chemically examined for arriving at the Fe content, the Revenue asked the appellant to execute the Bond for allowing the same to be cleared on provisional assessment basis, by paying the export duty @ Rs.300 per MT. Thereafter, the test result of CRCL Kolkata showed the Fe content as 58.7 %. On being sent for re-testing the Delhi CRCL arrived at the Fe content @ 60.75%. Being aggrieved by such a huge difference in the Fe content percentage between the tests, the appellant sought the second re-testing. The CRCL Mumbai arrived at the Fe content @ 55.6%. The Adjudicating authority considered all the factual details and finalized the provisional assess....

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....ines of the shipping Bill: Name of the Surveyor/issuer Fe content certified Fee moisture Remarks SGS Pvt. Ltd, 57.83% 8.48% Basis of invoice Mitra SK Pvt. Ltd, 57.39% 8.44% Basis for invoice CIQ(discharge Port) 57.02% 8.12%   CRCL, Mumbai 55.6% 4.5%   CRCL, Kolkata 58.7% 2.1%   CRCL, New Delhi 60.75 6.43%   Thus, from the above out of the six reports, in two cases the 'Fe' content shown above 58%. In this regard it is to be noted that though both the reports of CRCL, Kolkata and CRCL, New Delhi confirms the 'Fe' content above 58%, there is wide variation of 2.05% and 4.33% in the reported 'Fe' and 'Moi....

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....tal quantity of cargo exported was 27245 WMT. The value as per commercial invoice after factoring into moisture quantity as well as bonus for extra Fe less deduction for excess silica and demurrage, is declared for USD 2304430.14 whereas the same as per the three e-BRCs as well as the bank certificates in foreign currency is USD 2304430.14 Therefore, the transaction value under Section 14 of the Customs Act, 1962 read with Customs Valuation Rules, 2007 for the purpose of valuation is considered the invoice value ie. USD 2304430.14 or Rs.166149413.094/-taking into account of exchange Rate @ 72.1 per USD of the relevant date for the Shipping Bill. The above principle of acceptance of invoice value as the transaction value fo....

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....t. In case there is a variation in the results of the first test and the re-test, the competent authority will take the decision relying upon either of the tests specifying the ground in writing for the decision so taken." The 2nd retest report issued by the CRCL, Mumbai is valid one which has to be duly taken into consideration for the purpose of finalization of the shipping bill. Both the load port discharge port analysis reports were issued by reputed internationally recognized testing agencies. Such report cannot be brushed aside which formed the basis for raising the final invoice and receiving the remittance by the exporter. This has been upheld by the Hon'ble CESTAT, South Zonal Bench, Bangalore in the matter of Taurion ....