2018 (3) TMI 1505 - AT - Customs

Tribunal Upholds Countervailing Duty on Steel Products

M/s Suncity Sheets Pvt. Ltd. Versus Union of India/DA

M/s Suncity Sheets Pvt. Ltd. Versus Union of India/DA - 2018 (364) E.L.T. 1010 (Tri. - Del.) Issues:1. Imposition of Countervailing duty on certain steel products originating from China.2. Scope of subject goods and distinction between hot rolled (HR) and cold rolled (CR) steel products.3. Legality of imposing both Anti-Dumping (AD) duty and Countervailing (CV) duty on the same subject goods.Analysis:1. The appeal challenged the imposition of Countervailing duty on specific steel products from China by the Designated Authority (DA) and Ministry of Finance. The investigation was initiated based on an application by the Domestic Industry (DI) for anti-subsidy/Countervailing duty. The DA recommended a definitive CV duty to remove injury to the DI, which was accepted by the Ministry of Finance. The appeal contended that the scope of subject goods was expanded incorrectly and that HR and CR steel products should not have been considered together. The appellant argued that the conditions of manufacture, nature, and end use of HR and CR products are distinct.2. The appellant further argued that treating China as a non-market economy should preclude the imposition of CV duty for subsidy. Reference was made to Section 9 and 9B of the Customs Tariff Act, 1975, which prohibits imposing both CV duty and AD duty on the same goods to compensate for the same dumping or export subsidization situation. The appellant cited legal provisions and previous judgments to support the distinction between CR and HR products and the prohibition on double remedies.3. The DI defended the DA's findings, emphasizing the proper analysis of subject goods and the impact of dumping on the DI. The DI argued that the AD duty covers situations in non-market economies only concerning domestic subsidy, not export subsidization. The DI contended that the duties imposed did not exceed the injury margin and that the Lesser Duty Rule was followed. The DA and Authorized Representative supported the findings and imposition of CV duty. The Tribunal upheld the DA's findings, noting the distinction between HR and CR products, the legality of imposing both AD and CV duties, and the application of the Lesser Duty Rule to ensure duties did not exceed the injury margin. The appeal was dismissed, and the misc. application was disposed of.This detailed analysis covers the issues raised in the legal judgment regarding the imposition of Countervailing duty on certain steel products from China, the scope of subject goods, and the legality of imposing both Anti-Dumping and Countervailing duties on the same goods.