2017 (4) TMI 201

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....fter "the notification"] issued by the respondents for initiation of Countervailing Duty/Anti-Subsidy Investigation concerning the import of Hot Rolled and Cold Rolled Stainless Steel Flat Products originating from the Republic of China. The petitioner's brief submission and challenge is to the notification and initiation notification subsequently issued on 30-9-2016, inviting hearings which are to take place - which has subsequently fructified into a scheduled hearing, are that the initiation of investigation itself is legally flawed and opposed to Rule 5 of the Customs Tariff (Identification, Assessment and Collection of Countervailing Duty on Subsidized Articles and for Determination of Injury) Rules, 1995 [hereafter "the 1995 Rules"]. I....

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.... concluded process in the anti-dumping regime which has resulted in imposition of high rates of anti-dumping duty. It is highlighted that the final findings in the anti-dumping proceedings had specifically taken into account that China is a non-market economy and that this resulted in the imposition of an extremely high rate of determination of high injury margin which in turn led to the imposition of over 57% anti-dumping duty. 2. Rules 6 and 7 of the 1995 rules read as follows : "6. Initiation of investigation. -  (1) Except as provided in sub-rule (4) the designated authority shall initiate an investigation to determine the existence, degree and effect of alleged subsidy only upon receipt of a written applica....

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.... of an investigation. Explanation. - For the purpose of this rule, the application shall be considered to have been made "by or on behalf of domestic industry" if it is supported by those domestic producers whose collective output constitutes more than fifty per cent of the total production of the like article produced by that portion of the domestic industry expressing either support for or opposition as the case may be, to the application. (4) Notwithstanding anything contained in sub-rule (1), the designated authority may initiate an investigation suo motu, if it is satisfied from the information received from the Commissioner of Customs appointed under the Customs Act, 1962 (52 of 1962) or any other source that sufficient evi....

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.... designated authority shall also provide a copy of the application referred to in sub-rule (1) of Rule 6 to - (i)      the known exporters or the concerned trade association where the number of exporters is large, and (ii)     the government of the exporting country :           Provided that the designated authority shall also make available a copy of the application, upon request in writing, to any other interested party. (4) The designated authority may issue a notice calling for any information in such form as may be specified by it from the exporters, foreign producers and governments of interested countries and such information sh....

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....tion, the designated authority may record its findings on the basis of facts available to it and make such recommendations to the Central Government as it deems fit under such circumstances." 3. Rules 6 and 7 outline the necessary elements which the Designated Authority has to keep in mind. Rule 6(3) pointedly states that it is to be determined "on the basis of an examination of the degree of support for, or opposition to the application expressed by domestic producers of the like article.....". This allusion to "domestic producers of the like article" necessarily means that at the stage of deciding to launch an investigation, it is the support or the opposition to the investigation on the part of the domestic producers which is rel....