TaxTMI 
TaxTMI 
2026 (5) TMI 777
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....tract dt.04.11.2011 to one M/s Sinosteel International Macao Commercial Offshore Ltd., Macau totally valued at Rs.5,41,64,707/- FOB. The declared price was assessed provisionally, pending test and submission of final documents on execution of PD bond and securing revenue deposit towards differential moisture content between declared content of 8% and 5%, as ordered by the Commissioner. On finalization, by OIO dt.04.09.2012, the Original Authority accepted the declared price of USD 165 CFR PDMT and adopted the same for finalization of the shipping bill. Accordingly, he ordered for recovery of Rs.1,02,082/- along with applicable interest from the appellant on account of difference in moisture content. The appellant filed an appeal against the....
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....er transaction value as reflected in BRC. 3. Learned AR, on the other hand, has reiterated the findings of the Commissioner (Appeals) in the impugned order. 4. Heard both sides and perused the records. 5. On perusal of the impugned order, it is clear that the dispute is not regarding the Fe content or unit price but it relates to the variation in moisture content in load port test report and discharge port test report. 6. It is an admitted fact that crucial documents such as documents or other evidence on which relied by assessing officers were not provided to the appellant. Learned Commissioner (Appeals), has himself accepted this violation. However, despite such finding he proceeded to decide the matter on merit. In this regar....
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....y basing upon moisture content would have been on strong footing had the Adjudicating Authority provided the relied upon evidences to the appellant following Principles of Natural Justice. All that was required to be done was to provide the Chemical Laboratory Report of Custom House, Visakhapatnam which was relied upon to assess the quantity and value. Furnishing of the Customs Laboratory report would have resulted into Department being on sound footing but these basic things which are sacred to "rule of law" was ignored. Not following Principles of Natural Justice, which is basic to any democratic jurisprudence, is bad in law and ideally I should have remanded the case back to Lower Authority to pass a reasoned order. However, since Act/Ru....
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....r ad valorem, moisture and Fe content are not determinative. In this regard, the relevant para of the decision is as under: "7. The Department has challenged the said observation mainly on the ground that the Hon'ble Supreme Court in the case of Gangadhar Narsingdas Agarwal (supra), had observed that wet weight be adopted in contrast to the dry weight of the iron-ore fines as the basis for computing the export duty. However, on going through the said judgment, we find that the Hon'ble Supreme Court has decided the question whether for the quantification of export duty chargeable on the specific criterion of weight as the basis, be on the dry weight or on wet weight of the iron-ore fines. Needless to say, when the charge of export l....
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....ameters. From the documentary evidence provided by way of invoices, it is seen that based on the moisture content arrived at by CIQ, the appellant has reduced the quantity and arrived at the DMT quantity. There is no dispute that the appellant has realised only the value shown in the total value shown in the invoices. Therefore, it is clear that the transaction value has been followed by the appellant. This also meets the requirement as specified in the Circular No. 12/2014 dated 17.11.2014. Hence on this count the Appeal stands allowed. 12. Another point to be considered is that in this case the Export duty is on advalorem basis, which is dependent on the value of the consignment exported. Irrespective of the quantity of DMT expor....