2022 (2) TMI 266 - HC - Customs

Court Stays Anti-Dumping Duty Revocation on PVC Flex Films from China

QREX FLEX PVT LIMITED THRO KETAN THAKORBHAI PATEL Versus UNION OF INDIA

The court granted interim relief by staying the operation of the Notification revoking the anti-dumping duty on PVC Flex Films from China for six weeks. ... Extension of period of levy of anti-dumping duty under customs Notification No.38/2021 dated June 30, 2021 - the stance of the respondent No.1 is that this Court should not stay the Notification No.3/2022-Customs(ADD) dated 24th January 2022 or extend the anti-dumping duty beyond 31st January 2022 - HELD THAT:- The stay of the operation of the Notification dated 24th January 2022 is stayed till a further period of six weeks, and at the same time, also order that the Notification dated 8th August 2016, as extended by the Notification dated 30th June 2021, shall remain in operation for a period of six weeks. During this interregnum period of six weeks, the Special Bench of the Tribunal are expected to take up the appeals for hearing and dispose them of in accordance with law before the period of six weeks comes to an end. A litigant should not suffer because the Special Bench of the Tribunal is not available. The Tribunal has to make the necessary arrangement for urgent hearing of the appeals one filed by the Association. This writ application is disposed off with a direction that the Notification dated 24th January 2022 shall remain stayed from its operation for a period six weeks from today, and at the same time, the operation of the Notification dated 8th August 2016, as extended by the Notification dated 30th June 2021, shall continue for a period of six weeks. Issues Involved:1. Imposition and extension of anti-dumping duty on PVC Flex Films imported from China.2. Validity and implications of the Designated Authority's recommendation to withdraw the anti-dumping duty.3. Urgency and feasibility of hearing the pending appeal before the CESTAT.4. Interim relief and stay on the operation of the Notification dated 24th January 2022.Issue-wise Detailed Analysis:1. Imposition and Extension of Anti-dumping Duty on PVC Flex Films Imported from China:The writ applicants sought the continuation of anti-dumping duty on PVC Flex Films originating from China, which was initially imposed by a Notification dated 08.08.2016 for five years and extended for six months by a Notification dated 30.06.2021 pending a sunset review. The applicants argued that the duty was necessary to protect the domestic industry from injury due to dumped imports.2. Validity and Implications of the Designated Authority's Recommendation to Withdraw the Anti-dumping Duty:The Designated Authority, after a detailed investigation, recommended the withdrawal of the anti-dumping duty on 28.10.2021. The Authority concluded that the volume of imports from China had significantly declined, and there was no conclusive evidence of injury to the domestic industry attributable to dumped imports. The Authority also questioned the reliability of the report used by the domestic industry to claim the likelihood of injury. Consequently, the Ministry of Finance issued Notification No. 3/2022-Customs ADD dated 24.01.2022, revoking the anti-dumping duty.3. Urgency and Feasibility of Hearing the Pending Appeal Before the CESTAT:The writ applicants filed an appeal (No. AD/52173/2021) before the CESTAT on 23.12.2021, challenging the recommendation to withdraw the anti-dumping duty. Despite multiple requests for urgent listing, the appeal remained pending due to the unavailability of a Special Bench. The court acknowledged the urgency of the matter and suggested that the Tribunal should hear the appeal expeditiously.4. Interim Relief and Stay on the Operation of the Notification Dated 24th January 2022:The court considered the balance of convenience and the potential irreparable injury to the domestic industry if the anti-dumping duty was not extended. It decided to stay the operation of Notification No. 3/2022-Customs ADD dated 24.01.2022 for six weeks and extend the operation of the original Notification dated 08.08.2016, as extended by the Notification dated 30.06.2021, for the same period. This interim relief was granted to allow the Tribunal to hear and decide the appeals within this period.Conclusion:The court directed that the Notification dated 24.01.2022 shall remain stayed for six weeks, and the Notification dated 08.08.2016, as extended by the Notification dated 30.06.2021, shall continue for six weeks. The Tribunal was instructed to hear and decide the appeals within this period. The court clarified that it had not examined the merits of the recommendations or the final Notification, leaving these aspects for the Tribunal to consider.