TaxTMI 
TaxTMI 
2002 (10) TMI 305
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.... to be levied and collected on all imports of Potassium Permanganate from China into India ought to be @ 610 US$ PMT as was held in the preliminary finding under Notification dated 3-12-2000. 2. On the basis of the petition filed by the appellant herein who is the sole producer of Potassium Permanganate in India anti dumping investigation concerning the import of Potassium Permanganate originating in or exported from China, Hong Kong and Taiwan was initiated under Notification dated 30-10-2000. In the preliminary finding the Designated Authority came to the conclusion that Potassium Permanganate has been exported to India from China, Hong Kong and Taiwan below normal value resulting in dumping, that the domestic industry has suffered injury and that the injury has been caused by import from subject countries. It was also decided to recommend anti-dumping duty on all the Producers/Exporters from China, Hong Kong and Taiwan. 3. In the final finding under Notification dated 8-9-2001 recommendation for imposition of anti dumping duty was modified with respect to quantum. A chart showing the amount of duty recommended under preliminary finding and final finding is given belo....
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.... clarification normal value for non-market economy countries cannot be determined on the basis of cost of production obtained in domestic market. According to the appellant China is to be treated as a non-market economy country. Referring to a subsequent Notification No. 28/01-NT, dated 31-5-2001 the appellant contends that the second respondent has failed to consider the question whether the third respondent would satisfy the parameters defined therein in order to treat the third respondent as a firm where market conditions prevail and therefore, the provisions of paragraphs 1 to 6 would apply to its case instead of the principles set out in paragraph 8. The paragraph 8 which is added by way of amendment to Annexure I to Indian Anti Dumping Rules under the above notification reads as follows : - "Annexure 1 of Indian Anti Dumping Rules 8. The term 'non market economy country' subject to the Note to this paragraph means every country listed in that note and includes any country which the Designated Authority, determines and which does not operate on market principles of cost of pricing structures, so that sales of merchandise in such country do not reflect the fair value of....
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....is a definite admission on the part of the third respondent in its letter dated 8-3-01 that it is a Government owned company. In such circumstances, if normal value is determined on the basis of cost of production there will certainly be substantial distortion. 6. In order to substantiate the contention that the second respondent has been treating China as non-market economy country, reliance was placed by the learned Counsel for the appellant on initiation notification dated 16-5-1995, final finding under notification dated 12-11-1996 in the matter of imposing anti-dumping duty on imports of dead burnt magnesite (D.B.M.) originating in or exported from the People's Republic of China. In paragraph 13 of the final finding there is an observation as follows :- Moreover, in view of the particular market situation in China P.R. it being a non-market economy country and in view of the non-availability of relevant information the authority has no option but to resort to Clause (c)(ii) of Section 9A for the determination of the normal value. 7. Elaborate submissions were made before us by the learned Counsel appearing on behalf of the Designated Authority as also the learned ....
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....d respondent to verify the information submitted by them in response to exporters questionnaire and to obtain any other evidence as may be necessary. 11. From the information, furnished in the Questionnaire Response filed by the exporter and the Verification Report submitted by the Officers who visited the exporter's factory in the People's Republic of China, the Designated Authority worked out the Normal Value, Export Price and Dumping Margin. The Dumping Margin so arrived at was 8.1%. The Designated Authority recommended the imposition of Anti Dumping duty @ US$ 64 Per MT on exports by M/s. Yunnan Province Jianshui County Chemical Industry Factory to neutralize this dumping margin and customs notification dated 1-11-2001 was issued imposing duty at the recommended rate. 12. Examination of the records of the case shows that the information furnished by the third respondent M/s. Yunnan Province Jianshui County Chemical Industry Factory did not merit acceptance for many reasons. Firstly, the information furnished was for the financial year 1999 while period of investigation was 1-4-99 to 31-3-2000. The verification report states : "The company maintains records on calend....