Determination of iron ore fines' FE content for customs duty is based on WMT, not DMT.

ORDER :

1. This matter is taken up through Hybrid mode.

2. Assailing order dated 25.09.2024 passed by the Customs, Excise and Service Tax Appellate Tribunal, (Eastern Zonal Bench), Kolkata (for short, “the CESTAT”) in Customs Appeal No.75899 of 2024 and Customs Cross Objection No.75575 of 2024 (Commissioner of Customs (Preventive), Bhubaneswar Vs. M/s. S.M. Nirayat Pvt. Ltd.) WITH Customs Appeal No.75900 of 2024 and Customs Cross Objection No.75577 of 2024 (Commissioner of Customs (Preventive), Bhubaneswar Vs. M/s. S.M. Niryat Pvt. Ltd.), arising out of Order-in-Original No.CC(P)/BBSR/CUS/No.04/Commissioner/2024, dated 18.01.2024; Customs Appeal No.75901 of 2024 and Customs Cross Objection No.75579 of 2024 (Commissioner of Customs (Preventive), Bhubaneswar Vs. M/s. Disha Realcon Pvt. Ltd.), arising out of Order-in-Original No.CC(P)/BBSR/CUS/NO01/COMMISSIONER/2024, dated 08.01.2024; Customs Appeal No.76102 of 2024 and Customs Cross Objection No.75607 of 2024 (Commissioner of Customs (Preventive), Bhubaneswar Vs. Shri Ajay Gupta), arising out of Order-in-Original No.CC(P)/BBSR/CUS/NO-01/COMMISSIONER/2024, dated 08.01.2024; Customs Appeal No.76103 of 2024 and Customs Cross Objection No.75608 of 2024 (Commissioner of Customs (Preventive), Bhubaneswar Vs. Shri Ajay Gupta), arising out of Order-in-Original No.CC(P)/BBSR/CUS/NO04/COMMISSIONER/2024, dated 18.01.2024; Customs Appeal No.76104 of 2024 and Customs Cross Objection No.75609 of 2024 (Commissioner of Customs (Preventive), Bhubaneswar Vs. Shri Ajay Gupta), arising out of Order-in-Original No.CC(P)/BBSR/CUS/NO-05/COMMISSIONER/2024, dated 24.01.2024; Customs Appeal No.76105 of 2024 and Customs Cross Objection No.75610 of 2024 (Commissioner of Customs (Preventive), Bhubaneswar Vs. Shri Manish Khemka), arising out of Order-in-Original No.CC(P)/BBSR/CUS/NO01/COMMISSIONER/2024, dated 08.01.2024; Customs Appeal No.76106 of 2024 and Customs Cross Objection No.75611 of 2024 (Commissioner of Customs (Preventive), Bhubaneswar Vs. Shri Manish Khemka), arising out of Order-in-Original No.CC(P)/BBSR/CUS/NO-04/COMMISSIONER/2024, dated 18.01.2024; Customs Appeal No.76107 of 2024 and Customs Cross Objection No.75612 of 2024 (Commissioner of Customs (Preventive), Bhubaneswar Vs. Shri Manish Khemka), arising out of Order-in-Original No.CC(P)/BBSR/CUS/NO05/COMMISSIONER/2024, dated 24.01.2024; directed against the order of the Commissioner of Customs (Preventive), Commissionerate, Bhubaneswar, the instant appeal has been filed raising the following question(s) of law:

“i) Whether on the facts and circumstance of the case, the Ld. Tribunal is correct in law and facts in dismissing the appeal filed by Department against the Order-in-Original No.CC(P)/BBSR/CUS/No.01/Commissioner/2024 dated 08.01.2024 passed by the Commissioner, Customs (Preventive) Commissionerate, Bhubaneswar ignoring the errors in the said Original-in-Original dated 08.01.2024?
ii) Whether on the facts and circumstance of the case the Ld. 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 basis?
iii) Whether on the facts and circumstance of the case, the Ld. Tribunal is correct in law and facts in setting aside the Order-in-Original dated 08.01.2024 passed by the Commissioner of Customs (Preventive) Commissionerate, Bhubaneswar, when data was received, from the mobile phones, by the forensic database of Mr. Ajay Gupta, Director of S.M. Niriyat Pvt. Ltd., it was found that there is incidence of duty liability when cargo was split into two parts, i.e., less than 58% and above 58% though the average FE content of the combined Cargo is more than 58%?”

3. The learned CESTAT, upon taking into consideration of factual merit of the matter, has held as follows:

“12. We are of the strong view that merely on the premise of mixing of the cargo, post the issua