SC to hear next week PILs on duty evasion on export of iron ore in pellet form to China, other nations

The Supreme Court on Tuesday said it would hear next week Public Interest Litigations (PILs) which alleged duty evasion on the export of iron ore in pellet form by some firms to countries like China.

A bench of Chief Justice of India NV Ramana and Justice Krishna Murari agreed to list the matter for hearing next week after advocate ML Sharma, one of the petitioners in the case, mentioned the matter for early hearing.

Sharma said the plea needed urgent listing as it pertained to continuous duty evasion by some exporting firms. And every day iron ore to the tune of Rs 1000 crore is being exported, Sharma told the bench.

NGO Common Cause has also filed a separate PIL on the issue after him.

On January 15, 2021, the apex court had issued notice to the Centre and others on Sharma's plea seeking a direction to the CBI to register an FIR and probe the alleged duty evasion by some firms in exporting iron ore in pellet form to China since 2015. On September 24 last year, it sought responses from the Centre and others on the similar PIL filed by Common Cause.

The NGO in its PIL while alleging export of iron ore in pellet form by some private firms by evading export duty sought direction to Centre to levy an export duty of 30 per cent on the export of iron ore in all forms including pellets.

The PIL stated that mining companies illegally exporting huge quantities of iron ore in pellet form by avoiding the mandatory 30 per cent export duty that is levied on iron ore exports, cause huge loss to the public exchequer worth thousands of crores of rupees as well as result in a shortage of iron ore supply to the domestic steel industry.

The NGO added that such illegal export of iron ore pellets have the ultimate effect of over-exploitation of natural resources adversely affecting the environment, and by allowing such illegal export of iron ore pellets to go unchecked, the government is infringing people's right to clean environment as well as the precautionary principle.

The Central government had filed its affidavit and sought dismissal of the PILs saying that imposing or removing the export duty on any class of commodities is a policy decision of the government.

The Commerce Ministry said the decision to exempt a particular type of iron pellet is product specific and not company-specific as projected in the petition, affidavit stated.

( With inputs from ANI )

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