Iron Ore Export Duty Refund — CESTAT Hyderabad Dismisses Revenue's Appeal on Grounds of Finality and Estoppel

Case Reference

Commissioner of Customs Vs Vibhuthigadda Mines Pvt Ltd.
(CESTAT Hyderabad — Order pronounced on 09.04.2026)

Background and Facts of the Case

The dispute before the Customs Excise and Service Tax Appellate Tribunal, Hyderabad arose out of a challenge mounted by the Revenue against Order-in-Appeal No. 6/2013 (G) CUS dated 27.08.2013, passed by the Commissioner of Customs (Appeals), Guntur.

The respondent, M/s Vibhutigudda Mines (P) Ltd., had exported iron ore fines under Shipping Bill No. 44/2008-09 dated 15.07.2008, declaring the FOB value at USD 120 PDMT and discharging export duty liability at the applicable rate of 15%. The Customs Department, however, proceeded to enhance the declared value to USD 136 PDMT, drawing reference to contemporaneous export transactions. Faced with this enhancement, the respondent deposited the additional duty demanded, but did so under protest.

Subsequently, the respondent filed a refund claim, placing reliance on CBEC Circular No. 18/2008-CUS dated 10.11.2008, which had clarified that the FOB price declared by an exporter ought to be treated as a cum-duty price for the purpose of computing export duty liability.

Initial Rejection and First Round of Appeals

The Assistant Commissioner, through Order-in-Original No. 35/2009 R dated 16.03.2009, rejected the refund claim on two principal grounds:

  • The assessment order had not been challenged by the respondent; and
  • CBEC Circular No. 18/2008-CUS dated 10.11.2008 was applicable only to assessments that were pending at the time of the circular's issuance, and not to concluded assessments.

The respondent appealed before the Commissioner of Customs (Appeals), Guntur, who allowed the appeal through O-I-A No. 17/2009(G) Cus dated 18.09.2009, directing the Department to refund the excess customs duty that had been collected.

The Revenue, refusing to accept this outcome, carried the matter further to CESTAT. The Tribunal, vide common Final Order No. A/1071-1075/2010 dated 15.07.2010, rejected the Department's appeal. Undeterred, the Revenue escalated the matter to the highest judicial forum. The Hon'ble Supreme Court dismissed the civil appeal on 24.01.2011, as reported in Commissioner Vs Muneer Enterprises [2015 (319) ELT A226 (SC)].