TaxTMI 
TaxTMI 
TaxTMI 
2023 (6) TMI 798
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....f the Central Government not to impose anti-dumping duty proposed in the final findings be set aside and a direction be issued to the Central Government to issue a notification for continuation of anti-dumping duty, based on the recommendation made by the designated authority. 2. It transpires from the record that an application had been filed before the designated authority on behalf of the domestic industry for initiation of sunset review investigation under the provisions of the Tariff Act and the Customs Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 [the 1995 Anti-Dumping Rules] on imports of Hot-Rolled flat products of alloy or non-alloy steel [the subject goods] from China PR, Japan, Korea RP, Russia, Brazil and Indonesia [the subject countries]. The designated authority, thereafter, issued a public notice dated 31-3-2021 to review the need for continued imposition of anti-dumping duty in respect of the subject goods, originating in or exported from the subject countries and to examine whether the expiry of said anti-dumping duty is likely to lead to continuation or recurrence of du....
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....he subject countries face a large number of trade remedial measures from third countries which limits their potential to export the existing surplus production as well as employ their unutilized capacities. (iv) Unutilized capacities and surplus production are likely to be utilized to export to India in the event of cessation of the existing duties. (v) Basic Customs Duty on imports of subject goods has been reduced from 12.5% to 7.5% w.e.f. February, 2021. (vi) Historical trend of global steel prices show that steel prices are cyclical in nature and there is a likelihood if injury to the domestic industry due to imports at low price when there is a decline in global steel prices. (i) The Authority has considered whether continuation of anti-dumping duty would have adverse public interest. The Authority notes that there is healthy competition in the Indian market and continuation of anti-dumping duty would not lead to monopolistic or oligopolistic situation in the Indian market for the subject goods. 199. In view of the above, the Authority finds that there is a likelihood of continuation or recurrence of dumping a....
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.... 146(G), North Block, New Delhi, dated 4th January, 2022 OFFICE MEMORANDUM Subject : Final Findings-Anti-Dumping Investigation concerning imports of "Hot-Rolled flat products of alloy or non-alloy steel" from China PR, Japan, Korea RP, Russia, Brazil and Indonesia-reg. The undersigned is directed to refer to final findings on the above subject issued vide notification F. No. 7/5/2021-DGTR, dated the 14th September, 2021, wherein it was recommended to impose definitive anti-dumping duty on imports of "Hot-Rolled flat products of alloy or non-alloy steel" originating in or exported from China PR, Japan, Korea RP, Russia, Brazil and Indonesia. 2. In exercise of the powers conferred by sub-sections (1) and (5) of section 9A of the Customs Tariff Act, read with rules 18 and 23 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995, the Central Government, after considering the aforesaid final findings of the designated authority, has decided not to accept the aforesaid recommendations. Technical Officer (TRU-I)" 6. The main contention that has been advanced by Shri Dhruv....
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....provides that the margin of dumping has to be ascertained and determined by the Central Government, after such enquiry as may be considered necessary and the Central Government may, by notification in the Official Gazette, make rules for the purpose of this section. 11. In exercise of the powers conferred by sub-section (6) of Section 9A and sub-section (2) of Section 9B of the Tariff Act, the Central Government framed the 1995 Anti-Dumping Rules. 12. The duties of the designated authority are contained in Rule 4 and the relevant portion is reproduced below : "4. Duties of the designated authority. - xx       xx       xx (d) to recommend to the Central Government - (i) the amount of anti-dumping duty equal to the margin of dumping or less, which if levied, would remove the injury to the domestic industry, after considering the principles laid down in the Annexure III to these rules; and (ii) the date of commencement of such duty;" 13. Rule 5 deals with initiation of investigation to determine the existence, degree and effect of ....
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....smitted to the appropriate diplomatic representative of the exporting country. (5) The designated authority shall also provide opportunity to the industrial users of the article under investigation, and to representative consumer organizations in cases where the article is commonly sold at the retail level, to furnish information which is relevant to the investigation regarding dumping, injury where applicable, and causality. (6) The designated authority may allow an interested party or its representative to present the information relevant to the investigation orally but such oral information shall be taken into consideration by the designated authority only when it is subsequently reproduced in writing. (7) The designated authority shall make available the evidence presented to it by one interested party to the other interested parties, participating in the investigation. (8) In a case where an interested party refuses access to, or otherwise does not provide necessary information within a reasonable period, or significantly impedes the investigation, the designated authority may record its findings on the basis of the facts available to it and make su....
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....sp; as to, - (i) the export price, normal value and the margin of dumping of the said article; (ii) whether import of the said article into India, in the case of imports from specified countries, causes or threatens material injury to any industry established in India or materially retards the establishment of any industry in India; (iii) a causal link, where applicable, between the dumped imports and injury; (iv) whether a retrospective levy is called for and if so, the reasons there for and date of commencement of such retrospective levy : xx       xx       xx (b) Recommending the amount of duty which, if levied, would remove the injury where applicable, to the domestic industry after considering the principles laid down in the Annexure III to rules." 18. Rule 18 deals with levy of duty and the relevant portion is reproduced below : "18. Levy of duty. - (1) The Central Government may, within three months of the date of publicat....
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....formed by the Central Government was legislative, then too the principles of natural justice and the requirement of a reasoned order have to be complied with since the Central Government would be performing the third category of conditional legislation contemplated in the judgment of the Supreme Court in State of Tamil Nadu v. K. Sabanayagam and Another [(1998) 1 SCC 318]. The relevant observations are as follows : "75. Thus, even if it is assumed that the Central Government exercises legislative powers when it imposes anti-dumping duty or has taken a decision not to impose anti-dumping under section 9A of the Tariff Act, it would still be a piece of conditional legislation falling under the third category of conditional legislations pointed out by the Supreme Court in K. Sabanayagam. This is for the reason that in the scheme of the Tariff Act and the 1995 Anti-Dumping Rules, the Central Government has necessarily to examine all the relevant factors prescribed in the Tariff Act and the Rules for coming to a conclusion whether anti-dumping duty has to be levied or not. It cannot be that it is only the designated authority that is required to follow the procedure prescribed un....
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....al cases by applying the broad legislative framework and policy already set out in the Statute is not at all legislative in character, but clearly a quasi-judicial function requiring the Central Government to follow the principles of natural justice by affording an opportunity to the party likely to be adversely. xx       xx       xx 82. In view of the judgments of the Supreme Court in K. Sabanayagam, Cynamide India Ltd. and Godawat Pan Masala, and the decision of the Tribunal in Jubilant Ingrevia Limited, it has to be held that reasons have to be recorded by the Central Government when it proceeds to form an opinion not to impose any anti-dumping duty despite a positive recommendation made by the designated authority in the final findings for imposition of anti-dumping duty." (Emphasis supplied) 25. The Bench also examined the requirements of compliance of the principles of natural justice and a reasoned order and held as follows : "82. In view of the judgments of the Supreme Court in K. Sabanayagam, ....