Case Law Details
Moorgate Industries (I) Pvt. Ltd. Vs Commissioner of Customs (Port), Kolkata (CESTAT Kolkata)
CESTAT Kolkata in the matter of valuation of iron ore held that inordinate delay in testing the sample is virtually suicidal to the outcome of the test results. Hence, valuation set aside.
Facts- The present appeal, that has been filed by the appellant is in the second round of litigation in respect of exports of 24203MT(WMT) of Iron Ore Fines. The appellant contends that in terms of the said agreement, the value of iron ore fines was to be determined on the basis of Certificate of Inspection and Quality (CIQ) analysis conducted at the port of discharge as to the wet quantity of shipment and the dry quantity shall be determined by deducting the free moisture from such wet quantity. In case of variation between the weight at the point of discharge and the load port the average thereof would be arrived at, for all purposes.
Dispute in the present appeal concerns the ‘Fe’ content in iron ore fines exported vide the above referred Shipping Bill and the consequent determination of value for purposes of levy of export duty. The appellant filed the Shipping Bill intimating the iron content therein as 57.30% and moisture content as 8.98%. This was said to be based on the load port analysis, report obtained from a duly recognised testing concern- M/s. Mitra S.K. Pvt. Ltd. (MSK). As per record the discharge port report/CIQ indicated the iron content as 57.53% and moisture. The appellant submits that both the load port and the discharge port report confirms the iron content as below 58% whereby the product was classifiable under heading 26011142, attracting NIL rate of duty in terms of Notification No. 15/2016-Cus dated 01.03. 2016.
During the earlier round of litigation, the proper officer had finalised the assessment, based on the test report of the CRCL, which had determined the iron content as 62.4% and moisture content as 5.5%, thereby denying the benefit of NIL rate of Customs export duty.
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