The role of iron oxide impurities in the electrocatalytic properties of multiwall carbon nanotubes (MWCNTs) prepared by catalytic chemical vapour decomposition method (CCVD) is studied in detail. A novel magnetically modified electrodes have been developed by which MWCNTs were immobilized on indium-tin oxide (ITO) electrodes, without any chemical binders. The electro-catalytic oxidation of dopamine, and reduction of hydrogen peroxide have been studied by cyclic voltammetry on magnetically modified electrodes with (i) MWCNTs with occluded iron oxide impurities (Fe-MWCNTs), (ii) MWCNTs grown on iron oxide nanoparticle particulate films (Io-MWCNTs) and (iii) pristine iron oxide nanoparticle particulate film (Io-NPs). A shift towards less positive potentials for the oxidation of dopamine was observed which is in the order of Fe-MWCNTs < Io-MWCNTs < Io-NPs. Similarly, trend towards less negative potentials for the reduction of hydrogen peroxide was observed. Thus, the electrocatalytic activities displayed by MWCNTs have been attributed to the iron oxide impurities associated with it. The systematic variation was related to the nature of interaction of iron oxide nanoparticles with MWCNT surface.