2025 (8) TMI 1804

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....ay & Mr. Saurabh Jain ORDER 1. Though in the normal circumstances, we would not have interfered at the show cause notice stage and would have generally directed the party to reply to the show cause notice, the contents of paragraphs 6.2, 6.3.3 and 6.3.4 convince us to direct the department to reply to the petitions. The three paragraphs read as under: "6.2 The documents submitted by the suppliers through their authorized representative lack any valid evidence to establish that the raw materials procured from ASEAN countries are exclusively utilized in the manufacturing of Copper Tubes and Pipes supplied specifically to India. Additionally, the AIFTA rules do not provide any defined mechanism or framework to verify such claims....

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....ompliance with the Regional Value Content (RVC) requirements under the ASEAN-India Free Trade Agreement (AIFTA). Due to the lack of segregation of originating and non-originating materials used in exports to India, it is impossible to verify whether the copper cathodes used in the production process meets the AIFTA's rules of origin criteria. Without proper segregation of originating and non-originating materials, the final product does not satisfy the RVC requirements, which mandate that a specified percentage of the goods' value must originate from ASEAN to avail preferential tariff treatment. Consequently, the goods in question do not qualify for preferential treatment under the agreement, leading to the imposition of standard im....

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....in question do not qualify for preferential treatment....... instead of the reduced rates offered under the AIFTA". 3. Admittedly, the products imported are copper tubes and pipes. We could have understood if the product imported was something that could be dismantled to disseminate what is used in the manufacturing process etc., like for example if it was an automobile. The products here are copper tubes and pipes. The authority admits that it is not possible to segregate originating and non-originating materials and further states that there is no defined mechanism or framework provided in the AIFTA Rules to verify such claims or ensure that the origin of raw materials aligns with the criteria for preferential treatment under the agree....