2025-VIL-1723-CESTAT-HYD-CU
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CUSTOMS CESTAT Cases

Customs – Export of iron ore, Rejection of transaction value, Moisture content - The appellant was engaged in exporting iron ore under a contract with certain terms and conditions regarding Fe percentage, moisture content, etc. - Department provisionally assessed the exports and later finalized the assessment by considering the moisture content as per the CRCL report, which was higher than what was declared by the appellant - Whether the Adjudicating Authority was correct in recomputing the export quantity on the basis of moisture content as per the CRCL report, instead of the CIQ report and the transaction value reflected in the final invoices - HELD - The export value has to be determined as per the transaction value reflected in the final invoices and supported by the BRC and the Department cannot discard the transaction value without any valid grounds. Wherever the transaction value is doubted, due process is to be undertaken for deciding as to what should be the value for the purpose the computing the customs duty. Admittedly, no grounds have been adduced for discarding the transaction value as reflected in terms of the final invoices - in terms of contract various parameters were to be determined on the basis of CIQ report and thereafter only the final price was to be finalised and accordingly the invoices were issued and payment were received. Therefore, there was no ground for the Adjudicating Authority to discard the transaction value in the first place – In the present case, the moisture content as per the CIQ report, based on which the invoices were raised, should be considered for arriving at the DMT quantity, and not the CRCL report - The matter is remanded back to the original Adjudicating Authority to re-work the admissible refund based on the transaction value - The appeal is allowed by way of remand
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