2019 (6) TMI 491 - HC - Customs

Court grants interim relief on anti-dumping duty expiration, emphasizing procedural fairness and timely adjudication.

Farmson Pharmaceuticals Gujarat Pvt. Ltd. Versus Union Of India

The Court addressed challenges to Notification No. 19/2019-Customs (ADD) and granted interim relief to halt actions based on the final finding. Concerns ... Vires of N/N. 19/2019-Customs (ADD) dated April 16, 2014 - effect and implementation of Notification No.19/2019Customs (ADD) dated April 16, 2014 - HELD THAT:- he Court is of the view that the development in this matter and the passing of the orders time and again clearly indicate that the matter was to be decided finally on or before 26/04/2019. However, on account of respondents' inability to place on record their version of reply, the matter was required to be adjourned and that adjournment and posting of the matter unfortunately has resulted into passing of the notification of 16/04/2019 which if not suspended would amount to rendering the Court's order and proceedings infructuous without there being adjudication which situation cannot be permitted to prevail in any circumstances especially when the High Court is examining the final finding under Article 226 of the Constitution of India and when the Court has informed all the concerned by way of orders that the notice was being issued for final finding it was expected of all to be mindful of the time line fixed by the Court so as to contribute in the proceedings of hearing and adjudication which was subject matter of the main petition. The said subject matter cannot be permitted to be rendered infructuous only on account of, may be inadvertence, on part of the Union of India. Nor would any order of recording import hereafter be of any help to the petitioner as the petition would become infructuous if the impugned notification in this application is permitted to be remained operative. The Court is constrained to suspend the notification dated 16/04/2019 till final disposal of the main petition which is ordered to be placed on 12/06/2019. Issues:Challenge to Notification No. 19/2019-Customs (ADD) dated April 16, 2014; Request for stay effect and implementation of the notification; Ex parte ad interim relief; Final finding challenge; Disclosure statement challenge; Respondents' identities; Interim direction for not taking steps pursuant to final finding; Anti-dumping duty extension; Urgency for final disposal; Softcopy reply submission; Request for further extension of anti-dumping duty; Notification rescinding; Imports post rescinding; Rendering of Court's order infructuous; Suspension of notification; Final disposal date.Analysis:The application was filed to challenge Notification No. 19/2019-Customs (ADD) dated April 16, 2014, seeking to quash and set it aside, and to stay its effect and implementation pending the Special Civil Application 5278/2019. The petitioners challenged the final finding No.07/16/2018-DGAD dated 29/01/2019 and the disclosure statement issued by the Designated Authority. The respondents included the Union of India, Designated Authority, Minister of Finance, and Central Board of Indirect Taxes and Customs. The main petition requested an interim direction to halt actions based on the final finding. The Court issued notice for final disposal on 13/03/2019, considering the extended anti-dumping duty till 26/04/2019.The Court observed a breach of natural justice in rendering decisions without providing appropriate material, leading to a notice for final disposal. The matter was adjourned multiple times, with concerns raised about the anti-dumping duty ending on 26/04/2019. The Court directed an extension of the duty till 24/06/2019 to avoid rendering the petition infructuous. The parties were to exchange pleadings by 12/06/2019 for a peremptory hearing. The Court allowed the petitioner to serve the order for compliance.A subsequent application revealed the rescinding of the notification on 16/04/2019, potentially rendering the main petition moot. The Court acknowledged the lack of communication regarding the rescinding notification and the need to address imports post-rescinding. It emphasized the importance of timely adjudication and suspended the 16/04/2019 notification until the final disposal set for 12/06/2019 to prevent rendering the Court's proceedings infructuous.In conclusion, the Court's detailed analysis and orders aimed to address the challenges to the notification, ensure procedural fairness, and prevent the petition from becoming moot due to subsequent developments, emphasizing the need for timely adjudication and suspension of the rescinding notification to maintain the integrity of the legal process.