Valuation of Customs Duty of Iron Ore Fines should be done in Accordance with provisions of Section 14 of Customs Act: CESTAT Allows Refund Claim [Read Order]

The Kolkata bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the valuation of customs duty of Iron ore fines should be done under section 14 of the Customs Act,1962. 

Ore Cast (India), the appellant assessee engaged in import, export, and Merchant trading as a Star Export House, exported 34000 MT of Iron Ore fines having Fe content of 61% (rejection level- below 60%) as per Contract. 

The assessee appealed against the order passed by the Commissioner (Appeals) to confirm the rejection of a claim for a refund of Rs.66,43,390/-. 

S. C. Choudhury and N. Malick, the counsels for the assessee contended that according section 14(1) of the Customs Act states that where the export goods are sold by the exporter for export from India for delivery at the time and place of exportation, where the buyer and seller of the goods are not related and the price was the sole consideration for the sale, the value of the export goods shall be the ‘transaction value’ of such goods, that was to say the price paid or payable for the goods and was relevant for determination of export duty payable thereon. 

Also submitted that the transaction fulfills all the essential elements of transaction value contemplated under Section 14(1) of the Customs Act and revenue was obliged to accept the ‘transaction value’ as clarified by the Ministry. 

S.Debnath, the counsel for the department relied on the decisions made by the lower authorities and contended that the assessee was not liable to refund the duty paid. 

The Bench observed that if the buyer and seller are not related and if the price is the sole consideration, the transaction value at the time and place of export will be the assessable value. 

The two-member bench comprising Muralidhar (Judicial) and Anpazhakan (Technical) held that the assessee was eligible for the excess customs duty and allowed the refund claim filed by the assessee. 

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates