2012 (10) TMI 918 - AT - Customs

Appeal Granted: Reduced Anti-Dumping Duty Reflects Fair Assessment Criteria

SUZHOU DAWNRAYS PHARMACEUTICAL CO. LTD. Versus UNION OF INDIA

SUZHOU DAWNRAYS PHARMACEUTICAL CO. LTD. Versus UNION OF INDIA - 2012 (282) E.L.T. 433 (Tri. - Del.) Issues:Challenge to Final Findings and Notification imposing anti-dumping duty; Consideration of domestic industry; Denial of Market Economy Status; Excessive confidentiality in determining normal price.Analysis:The appellants contested the Final Findings and Notification imposing anti-dumping duty on Ceftriaxone Sodium sterile. The primary issues raised were the consideration of the domestic industry, denial of Market Economy Status, and excessive confidentiality in determining the normal price.The appellants argued that the domestic industry status was wrongly granted to a single petitioner, excluding other domestic producers and a 100% EOU. They claimed that the petitioner had concealed importing intermediate products and had relationships with Chinese exporters. However, the Designated Authority (D.A.) found that the petitioner produced a significant portion of the goods and did not import the subject goods, leading to the status being upheld.Regarding Market Economy Status denial, the appellants contended that the D.A. had not considered various aspects, such as procurement practices and pricing. The D.A. justified its decision by highlighting distortions in raw material costs and utility pricing in China, leading to the denial of Market Economy Status after a detailed assessment.The appellants also raised concerns about excessive confidentiality affecting their ability to challenge the anti-dumping margin. Upon review, it was found that the D.A. had adopted a method for constructing the normal value based on raw material import prices, leading to a higher anti-dumping duty. However, the Tribunal determined that the initial method of constructing normal value was more appropriate, resulting in a reduced anti-dumping duty for the appellants.In conclusion, the Tribunal partially allowed the appeal by reducing the anti-dumping duty from US$ 55.61 to US$ 39.42 based on the revised calculation of the dumping margin. The judgment emphasized fair assessment criteria, proper consideration of domestic industry dynamics, and transparent procedures in anti-dumping investigations.