Central Government's decision rejecting anti-dumping duty recommendation without reasons violates natural justice principles under section 9C

CESTAT New Delhi held that Central Government's decision not to impose anti-dumping duty despite designated authority's recommendation was unsustainable. The tribunal determined that appeals under section 9C of Tariff Act are maintainable against government decisions on anti-dumping duties. Central Government's function in such matters is quasi-judicial, requiring compliance with natural justice principles and reasoned orders. Since the office memorandum lacked reasons and violated natural justice, it was set aside. Matter remitted to Central Government for fresh consideration of designated authority's recommendation. Appeal allowed.

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Issues Involved:
1. Maintainability of the appeal u/s 9C of the Customs Tariff Act.
2. Nature of the Central Government's determination'whether legislative or quasi-judicial.
3. Compliance with principles of natural justice and requirement of a reasoned order.
4. Interim protection for the appellant pending final decision.

Summary:

1. Maintainability of the Appeal u/s 9C:
The Tribunal examined the maintainability of the appeal under section 9C of the Customs Tariff Act and held that the appeal would be maintainable against the decision of the Central Government not to impose anti-dumping duty.

2. Nature of the Central Government's Determination:
The Tribunal considered whether the determination by the Central Government was legislative or quasi-judicial. It concluded that the function performed by the Central Government is quasi-judicial in nature. Even if considered legislative, the principles of natural justice and the requirement of a reasoned order must be complied with, as the Central Government performs the third category of conditional legislation.

3. Compliance with Principles of Natural Justice and Requirement of a Reasoned Order:
The Tribunal held that the Central Government must record reasons when it decides not to impose anti-dumping duty despite a positive recommendation by the designated authority. It emphasized that the principles of natural justice require that tentative reasons be recorded and conveyed to the domestic industry, allowing them an opportunity to submit a representation.

4. Interim Protection for the Appellant:
The Tribunal provided interim protection similar to that granted by the Delhi High Court in similar cases. It directed provisional assessment of imports concerning the subject goods from the subject countries, clarified that this direction would not create any equities in favor of the domestic industry, and stated that the direction would not impact the final decision to be taken by the Central Government.

Conclusion:
The Tribunal set aside the office memorandum dated 08.01.2022 and remitted the matter to the Central Government to reconsider the recommendation made by the designated authority. The directions for provisional assessment of imports will remain operative until a decision is taken by the Central Government. The appeal was allowed to the extent indicated.

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