Anti-Dumping Duties are imposed to ensure Manufacturing facilities of Industry as Whole remains viable for Future Investment: CESTAT [Read Order]

The New Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the Anti-dumping duties are imposed to ensure the manufacturing facilities of industries as a whole remain feasible for future investments. 

Reliance Industries Limited, the appellant assessee was a domestic producer of ‘Mono Ethylene Glycol’ (MEG) in India, had filed this appeal to assail the Notification notifying that since the domestic industry had not suffered material injury in terms of the provisions contained in the Customs Tariff (Identification, Assessment, and Collection of Anti- Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 it would not be appropriate to recommend a levy of anti-dumping duty on the import of MEG. 

The assessee appealed against the final findings of the designated authority deciding not to recommend the imposition of anti-dumping duty on imports of MEG originating in or exported from the subject countries. 

Vipin Kumar Jain, Vishal Agarwal, Reena Asthana Khair, Rajesh Sharma, Tuhina Sinha, Shreya Dahiya, Vrinda Bagaria, Subham Jaiswal, Samarth Bajaj, and Nikhil Sharma appeared on behalf of the assessee. 

The counsel for the assessee contended that in the case of Bridge Stone Tyre Manufacturing (Thailand) vs. Designated Authority, the court held that the impact of the industry had to be examined in the context of the industry existing today as a whole also that, which may be set up in the future and not regarding the integrated domestic industry on a standalone basis. 

Shobha Nath, the counsel for the designated authority contended that there was no conclusive evidence to show that imports have adversely affected the price of domestic industry. 

The three-member bench comprising Dilip Gupta (President), Binu Tamata (Judicial), and Hemambika Priya (Technical) held that the anti-dumping duties are imposed not only to protect the current manufacturing facilities but also to ensure that the industry as a whole remains viable for the future investments. 

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