Let export order cannot be issued before payment of full custom duty: CESTAT

Odisha Mining Corporation Limited Vs Commissioner of Central Excise (CESTAT Kolkata)

Introduction: The case of Odisha Mining Corporation Limited vs. Commissioner of Central Excise (CESTAT Kolkata) revolves around the rejection of a refund claim related to iron ore fines. The pivotal issue at hand is the issuance of a let export order and the associated duty payment timeline.

Background and Facts:

• The appellant entered into a contract with M/s S.K.Resources Ltd. for the sale of 63,200 MT of Iron Ore Fines.
• Shipping Bill No.00587/IOF/2007-08 was filed for Customs clearance on 06.12.2008.
• On 07.12.2008, Notification No.129/2008-Cus came into force, exempting Iron Ore Fines from export duty.
• The shipment occurred on 18.12.2008.
• The appellant filed a refund claim on 30.12.2008, which was initially rejected, citing the provisional assessment of the Shipping Bill.

Refund Claim Rejection:

• The first refund claim was returned due to the Shipping Bill not being assessed finally.
• A subsequent refund claim was also returned, deeming it premature.
• The Shipping Bill was ultimately assessed on 14.03.2009, as per a letter received on 08.01.2013.
• The refund claim was rejected, asserting that the duty was payable on 06.12.2008, and thus, the claim was not maintainable.

Appellant’s Arguments:

• The appellant contends that the Shipping Bill clearly shows that duty was paid on 08.12.2008, not on 06.12.2008.
• Asserts that the let export order date of 06.12.2008 is fabricated, as per their submissions.
• Emphasizes that the let export order cannot be issued before the payment of full duty.
• Claims entitlement to the refund as no duty was payable on the actual export date, i.e., 08.12.2008.

CESTAT Kolkata Ruling: