Anti-dumping duty on EOU DTA clearances depends on notification coverage and does not extend to bonded goods cleared into India.

Anti-dumping duty was discussed in the context of clearances by a 100% EOU into the Domestic Tariff Area and the scope of the applicable anti-dumping notification. The text states that section 9A(2A) of the Customs Tariff Act exempts imports by a 100% EOU from anti-dumping duty, but that protection does not extend to bonded goods cleared into the DTA, which are liable to duties as if imported into India. It further states that duty cannot be sustained where the imported goods are Polyester Fully Drawn Yarn and the notification covered only Partial Oriented Yarn. The appeal succeeded only to the extent of setting aside the anti-dumping duty demand, while the remaining confirmed duties were maintained.

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Issues: (i) Whether anti-dumping duty was leviable on clearances made by a 100% Export Oriented Unit into the Domestic Tariff Area under section 9A(2A) of the Customs Tariff Act, 1975; (ii) Whether anti-dumping duty could be sustained when the imported goods were Polyester Fully Drawn Yarn, whereas Notification No. 15/2002-Cus dated 08.02.2002 covered Partial Oriented Yarn.

Issue (i): Whether anti-dumping duty was leviable on clearances made by a 100% Export Oriented Unit into the Domestic Tariff Area under section 9A(2A) of the Customs Tariff Act, 1975.

Analysis: Section 9A(2A) exempts imports made by a 100% EOU from anti-dumping duty, but the goods in question were not retained as imports within the EOU. They were bonded in the EOU and thereafter cleared into the Domestic Tariff Area. Goods removed to the Domestic Tariff Area are liable to duties as if imported into India, so the exemption under section 9A(2A) did not apply to such clearances.

Conclusion: The contention based on section 9A(2A) failed and was against the assessee.

Issue (ii): Whether anti-dumping duty could be sustained when the imported goods were Polyester Fully Drawn Yarn, whereas Notification No. 15/2002-Cus dated 08.02.2002 covered Partial Oriented Yarn.

Analysis: The import documents showed that the goods were Polyester Fully Drawn Yarn and not Partial Oriented Yarn. Since the anti-dumping duty was imposed under Notification No. 15/2002-Cus, which applied only to POY, no anti-dumping duty was chargeable on the goods actually imported.

Conclusion: The demand of anti-dumping duty was unsustainable and was in favour of the assessee.

Final Conclusion: The appeal succeeded only to the limited extent of setting aside the anti-dumping duty demand, while the remaining confirmed duties were maintained.

Ratio Decidendi: Anti-dumping duty is not payable on goods unless they fall within the scope of the applicable anti-dumping notification, and the 100% EOU exemption under section 9A(2A) does not extend to DTA clearances of bonded goods.

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