2017 (1) TMI 136 - AT - Customs

Tribunal Upholds Anti-Dumping Duty on PTA Imports

Filatex India Limited Versus Union of India/DA

Filatex India Limited Versus Union of India/DA - 2017 (349) E.L.T. 165 (Tri. - Del.) Issues:Challenge against imposition of Anti-dumping duty on import of Purified Terephthalic Acid (PTA) into India from specific countries.1. Exclusion of a domestic industry player from the investigation.2. Conduct of cumulative investigation for injury determination.3. Alleged violation of principles of natural justice.4. Injury analysis based on data from a sick company.5. Request for separate assessment for Malaysia and other subject countries.Analysis:1. The appellant contested the exclusion of a domestic industry player, Reliance Industries Ltd. (RIL), from the investigation. The tribunal found that RIL's relationship with a Malaysian producer exporting substantial quantities to India justified its exclusion. The tribunal upheld the decision of the designated authority (DA) based on Rule 2(b) of the Anti Dumping Rules, emphasizing the need for reasonable exclusion criteria and distinguishing this case from previous investigations.2. The appellant argued for separate investigations for different subject countries, specifically Malaysia. However, the tribunal supported the DA's decision for a cumulative assessment based on specific conditions being met, such as significant dumping margins and direct competition with Indian products. The tribunal highlighted the DA's appropriate reasoning and findings in the final report.3. Allegations of violating principles of natural justice were raised due to undisclosed data provided by Indian Oil Corporation Ltd. (IOCL) during the investigation. The tribunal noted that the DA did not consider this data for injury analysis, as explicitly stated in the final findings. Consequently, the tribunal dismissed the appellant's claim of natural justice violations.4. Concerns regarding injury analysis based on data from a sick company, MCCPTA India Corporation Pvt. Ltd., were addressed by the DA, who attributed the injury to various factors beyond technical problems. The tribunal agreed with the DA's assessment, emphasizing the impact of imports on MCPI's financial metrics and dismissing objections related to MCCPTA's inclusion in the domestic industry.5. The appellant's request for separate assessment for Malaysia and other subject countries was rejected by the tribunal. Citing the Anti Dumping Rules, the tribunal emphasized the need to evaluate injury to the domestic industry collectively, especially after disqualifying RIL as a domestic industry due to its Malaysian connections. The tribunal found no legal basis for conducting separate investigations based on country distinctions.In conclusion, the tribunal upheld the imposition of Anti-dumping duty on PTA imports from subject countries, rejecting the appeals due to the lack of factual or legal grounds against the final findings and customs notifications. The miscellaneous applications linked to the appeals were also disposed of accordingly.