TaxTMI 
TaxTMI 
2017 (11) TMI 621
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....inal findings dated 20/10/2016 of the Designated Authority (DA), Directorate General of Anti-Dumping and Allied Duties, Department of Commerce, Ministry of Commerce and Industry, New Delhi and Customs Notification No.01/2017 - CUS (ADD) dated 05/01/2017 issued by the Ministry of Finance, Department of Revenue, New Delhi. The Designated Authority (DA) initiated investigation concerning imports of jute products namely jute yarn/ twine (multiple folded/cabled and single), Hessian fabric and Jute sacking bags from Bangladesh and Nepal. Based on an application fled by Indian Jute Mills Association (IJMA), the DA initiated investigation in terms of Customs Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995. On completion of investigation, the DA recommended imposition of Anti-Dumping Duty of different quantum in respect of various jute products originating in or exported from Bangladesh or Nepal. Based on the recommendations of the DA, the Department of Revenue issued the above-mentioned customs notification imposing Anti-Dumping duty on these jute products. 2. Out of these 7 appeals, six appeals are c....
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....stry contested the above appeals. She submitted that what is relevant is the type of product. All products under investigation are jute articles. At the initiation stage, there is no legal role for the exporters and they cannot raise objection on initiation. She drew our attention to the provision of Rule 6 of AD Rules. Rule 6 (2) talks about public notice notifying the decision of the DA to initiate investigation to be forwarded to known exporters of the article alleged to have been dumped. At that time, the DA shall also provide copy of the application made by the affected parties (DI) under Rule 5 (1). Post initiation all particulars were made known to all the aggrieved persons. On this ground there could be no grievance in these appeals. 7. Regarding satisfaction of the scope of DI, it is submitted that it is necessary for the DI to satisfy their status with reference to product and not under multiple product type. Reference was made to the provisions of Rule 2 (d) which defines "like articles". All the three categories of jute products are rightly covered under the said scope and there is no infirmity in the final finding on this account. It is the discretion of the DA whil....
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....been properly done and at that stage no detailed verification of various data was required. It is the preliminary satisfaction of the DA which is relevant. In the present case, the same is satisfied. 13. We have heard all the sides and perused the appeal record. We note that the learned Counsel for the exporters from Bangladesh and the Indian importers submitted a written note after the hearing. In the said note, he raised multiple issues contesting the final findings of the DA. It is clear that during the course of oral submissions before the Bench the learned Counsel only raised the issue of faulty initiation of the investigation by the DA and improper defining of the scope of DI during investigation. However, in the written submission various other points were also raised. 14. On the main issue which was only argued during oral submission by the learned Counsel, regarding the faulty initiation of Anti-Dumping investigation, we have considered the factual background, carefully. On receipt of a written application from IJMA for initiation of Anti-Dumping investigation for imposing anti-dumping duty on import of jute products originating in or exported from Bangladesh and Nep....
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....by the domestic industry and imported from subject countries are comparable in terms of physical and chemical characteristics, manufacturing process & technology, functions and uses, products specifications, pricing, distribution and marketing and tariff classification of the goods. Consumers can use and are using the two interchangeably. The two are technically and commercially substitutable and hence, should be treated as 'like article' under the AD Rules. Therefore, for the purpose of the present investigation, the subject goods produced by the petitioner companies in India are treated as 'like article' to the subject goods being imported from the subject countries. 33. For the purpose of evaluating dumping margin, comparison of constructed normal value with ex-factory export price has been made amongst similar product types of Product under consideration. The same approach has been adopted for producers/exporters from Nepal as the basis on information made available in the questionnaire responses and on site data verification". 16. Against the above finding, the exporters and importers in their appeals, stated that the DA failed to identify the articles liable for AD duty....
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....rs may be deemed not to form part of domestic industry." 18. The requirement under the above definition is the applicants should have a major proportion in Indian production. The Tribunal examined the term "major proportion" in Lubrizol India Pvt. Ltd. Vs. Designated Authority in 2005 (187) E.L.T. 402 (Tri. - Del.). As per the finding of the Tribunal in the said case, the standing of the DI has to be considered for the product as a whole and not articles or each type of product individually. We also refer to para 6 (i) of Annexure I of AD Rules, 1995. It is stipulated while arriving at margin of dumping the DA shall make a fair comparison between export price and the normal value. The comparison shall be made at the same level of trade. Due allowance has to be given for differences in physical characteristics or any other differences which will affect the price comparability. 19. We have examined the final findings on the above issue. The DA specifically dealt with the particular parameters, product type-wise and recommended AD duty accordingly. The same is clear from the findings recorded at paras 72 and 93 to 96 of the final finding. 20. Regarding the submission of the a....
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....in the written submission is also looked into by us so that no grievance is left to the appellants on this ground. The findings of the DA was contested regarding application on residuary rate for non sample cooperating exporters when dumping margin for sample exporter was found to be nil for Hessian Jute fabric. In this connection, we refer to Rule 18 of the AD Rules which states that the AD duty for non sample producers cannot exceed the weighted average margin of dumping established with reference to sample exporters. Proviso to Rule 18 (2) provides for disregarding any zero margin which are less than 2% of export price. We note that the DA has correctly examined this aspect and recorded his finding in para 72 (12). The weighed average of export price of Hessian fabric to India has been adopted for the purpose of evaluating dumping margin and injury margin for this product type, for the residual category producers/exporters. 23. Another point raised in the written note is whether adjustment for cash subsidiary granted by the Government of Bangladesh could be denied while arriving at ex-factory export price. We note that this aspect was specifically examined by the DA who recor....