Safeguard duty on solar imports: interim protection refused after statutory injury analysis and domestic industry impact review.

Interim relief against safeguard-duty recovery on imported solar cells and modules was refused because the Court found the statutory basis for the safeguard measure was supported by the Director General's assessment of import surge, domestic market share, sales, production, capacity utilisation, profitability, inventory, price undercutting, and causation of serious injury. The Court also noted that the importer had participated in the investigation despite awareness of the likely levy, and that the power purchase arrangement contained a change-in-law mechanism reducing any claimed financial prejudice. Continuance of interim protection was held likely to defeat the object of the safeguard measure and prejudice the domestic industry.

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Issues: Whether interim relief should be granted to restrain recovery and permit clearance of imported solar cells and modules without payment of safeguard duty pending final hearing.

Analysis: The challenge at this stage was directed against the safeguard-duty notification and the final findings on which it was based. The Court noted that the Director General had considered the relevant statutory factors, including increase in imports in absolute and relative terms, domestic market share, sales, production, capacity utilisation, profitability, inventory, price undercutting, and the causal link between increased imports and serious injury. The Court also took into account that the petitioner had participated in the investigation despite being aware of the likely levy, and that the power purchase arrangement contained a change-in-law mechanism that protected the petitioner against financial prejudice. On balance, the Court found that continuance of interim protection would defeat the object of the safeguard measure and would cause prejudice to the domestic industry.

Conclusion: Interim relief was refused and the stay application was dismissed.

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