Preliminary safeguard findings remain reviewable only for jurisdictional error or procedural breach, with no quashing at the recommendation stage.

Preliminary safeguard findings under Section 8B of the Customs Tariff Act, 1975 and the 1997 Rules are only recommendatory, so writ interference at that stage is limited to clear jurisdictional error, statutory infraction, or breach of natural justice. The Madras HC held that the writ petition was maintainable on the facts, including territorial jurisdiction, but declined to quash the preliminary findings because no provisional safeguard duty had yet been imposed and the investigation was still ongoing. The Court further held that the absence of a hearing before the preliminary recommendation did not vitiate the proceedings, since the scheme contemplated further participation and a final hearing before final findings, and no prejudice was shown.

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Issues: (i) whether the writ petition challenging the preliminary safeguard findings was maintainable at the stage of recommendation, and (ii) whether the absence of hearing before issuance of the preliminary findings vitiated the proceedings on the ground of violation of natural justice and locus.

Issue (i): whether the writ petition challenging the preliminary safeguard findings was maintainable at the stage of recommendation.

Analysis: The challenge was directed against preliminary findings issued in the course of a safeguard investigation under Section 8B of the Customs Tariff Act, 1975 and the relevant Rules of 1997. The preliminary findings were only recommendatory and no provisional safeguard duty had yet been imposed by the Central Government. The Court held that a writ court may exercise limited review where there is a jurisdictional error, violation of natural justice, or a clear statutory infraction, but in matters of economic regulation and ongoing investigations interference at the preliminary stage must remain narrow. The Court also noted that the petitioner had Chennai office presence, and therefore territorial jurisdiction could not be denied on the facts presented.

Conclusion: The writ petition was maintainable, but the Court declined to interfere with the impugned preliminary findings at that stage.

Issue (ii): whether the absence of hearing before issuance of the preliminary findings vitiated the proceedings on the ground of violation of natural justice and locus.

Analysis: The Court distinguished between the initiation and preliminary-finding stages of safeguard proceedings and the final determination stage. It held that the scheme of the 1997 Rules contemplated further participation, including submissions and a public hearing before final findings, and that no prejudice was shown from the absence of a hearing before the preliminary recommendation. The Court treated the petitioner as an interested party entitled to participate in the investigation, but found that the preliminary recommendation itself did not call for quashing merely because a personal hearing had not yet been granted.

Conclusion: The challenge based on natural justice failed at the preliminary stage.

Final Conclusion: The Court left the safeguard investigation to proceed in accordance with law and declined to quash the preliminary findings notice.

Ratio Decidendi: Preliminary safeguard findings that are only recommendatory and precede the final determination ordinarily do not warrant interference under Article 226 unless there is a clear jurisdictional defect or a substantive breach of statutory procedure or natural justice.

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