Fixing Anti-Dumping Duty using RLV Method Acceptable: CESTAT [Read Order]

In the cases of M/s JSW Steel Coated Products Ltd and M/s and Essar Steel India Limited, the Delhi bench of the Customs, Excise and Service Tax Tribunal (CESTAT) recently ruled that method of fixing anti-dumping duty ( ADD ) based on reference landed value ( RLV ) is acceptable.

In the present case, Assessees are the domestic producers of “color coated/pre-painted flat products of alloy or non-alloy steel” in India (DI). During the relevant period, the Designated Authority, Directorate General and Anti-Dumping and Allied Duties (DA) imposed the definitive Anti-Dumping duty on “color coated/pre-painted flat products of alloy or non-alloy steel” which originating or exported from China and EU. The Anti-Dumping duty was to be fixed based on the reference landed value of the subject goods.

However, both the Assessees have challenged the quantification or method of determining the AD duty imposable on the subjected goods and the counsel submitted that the AD duty should have been fixed on absolute terms without any reference value. Further, the Counsel argued that the particulars of coking coal/met coke had increased substantially affecting the DI. Therefore the analysis of the DA in this regard is not proper and scientific.

After considering the above-narrated facts and circumstances the Tribunal comprising of President Justice Dr. Satish Chandra, Judicial Member S.K. Mohanty and Technical Member B. Ravichandran observed that there is no mandate either in terms of WTO agreement or AD rules for the DA to recommend AD duty in a particular form. The DA will consider the facts and circumstances of each case during the course of the investigation and recommend the AD duty accordingly. This can be based on reference price or fixed duty.

The Tribunal further held that fixing AD duty based on reference landed value is one of the accepted methods which have been followed in the past including for various steel products produced by the same appellants. Therefore the Tribunal accepted the method adopted by the DA for determining the Anti-Duty on the subjected goods while dismissing the appeals filed by the Assessees.