Customs Duty on Iron Ore Fines to be Determined on WMT: Orissa HC Dismisses Customs Appeal [Read Order]

In a recent case, the Orissa High Court dismissed the Customs Appeal in the absence of substantial questions of law in the appeal filed under Section 130 of the Customs Act, 1962, holding that the customs duty on iron ore fines to be Determined on “Wet Metric Ton” (WMT).

The Commissioner of Customs sailing order dated 25.09.2024 passed by the Customs, Excise and Service Tax Appellate Tribunal, (Eastern Zonal Bench), Kolkata (“the CESTAT”) . It was questioned that whether the Tribunal is correct in holding that the net Fe content of Iron Ore Fines for the purpose of levy of Customs duty shall be determined on WMT basis applying the conversion formula, when the emergence of formula for such conversion has no statutory babasis.

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The CESTAT has held “that merely on the premise of mixing of the cargo, post the issuance of the let export order cannot justify the claim for demand of duty on the entire lot, when there is nothing contrary to hold Fe% being more than the dutiable threshold, when arrived at on WMT basis. For the reason we find no merit in the learned adjudicating authority, imposing penalty under Section 114AA on the respondents herein. Moreover, there is no discussion in the order passed by the learned Commissioner, with regard to justification for imposition of such a penalty on the respondents.”

Mr. Abhratosh Majumdar, Senior Advocate appearing for the respondent submitted that the questions of law as posed by the appellant on the facts and in the circumstances of the case are no more res integra by virtue of judgment dated 31.07.2025 of this Court passed in OTAPL Nos.42 & 31 of 2025 respectively in the case of Commissioner of Customs (Preventive), Bhubaneswar Vs. M/s. Chamong Tee Exports Pvt. Ltd., wherein it has been held that “Fe” content in Iron Ore Fines (IOF) is to be determined on the basis of “Wet Metric Ton” (WMT) but not “Dry Metric Ton” (DMT).

Since there was no substantial questions of law in the instant appeal filed under Section 130 of the Customs Act, 1962, the bench of Chief Justice Harish Tandon and Justice Murahari Sri Raman dismissed the appeal.

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