Anti Dumping Duty on Imports: CESTAT allows Modification of Product to Saturated Fatty Alcohol [Read Order]

In a recent ruling, while considering the case of anti dumping Duty, the Delhi bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) allowed modification of products to saturated fatty alcohol.

Inter-Continental Oils and Fats Pte. Ltd and others filed Anti-Dumping Appeals for quashing the final findings dated 23.04.2018 of the designated authority recommending imposition of anti-dumping duty as also the consequential Customs Notification dated 25.05.2018 issued by the Central Government imposing an anti-dumping duty.

 that M/s VVF (India) Ltd., a domestic industry, applied to the designated authority for initiation of an anti-dumping investigation under the provisions of the Tariff Act and the 1995 Anti-Dumping Rules. The product under consideration for the proceedings was described in the application filed by the domestic industry.

The domestic industry, in the said application, also indicated the four-digit Product Control Number of the various carbon chains to allow a reasonable and fair comparison of normal value and export price and the same is reproduced below:

It was submitted that on the first issue, the respondent would have no objection if the product under consideration is re-defined as “Saturated Fatty Alcohol with a carbon chain length of C12, C14, C16 and C18 including single, blends and unblended which includes blends of a combination of carbon chain lengths C12-C14, C12-C16, C12-C18, C16-C18 and C14-C16”. 

It was stated the domestic industry had explained in detail the manufacturing esterification and hydrogenation to get fatty alcohol of carbon chain length. Crude palm kernel oil inherently consists of carbon chain lengths of C8 to C18, which can be separated through the process of fractional distillation. The only distinguishing factor is the degree to which the distillation process is undertaken.

The domestic industry also stated that it manufactured pure cuts C16 and C18 during the period of investigation but as the demand for pure cuts C12 and C14 was negligible it did not manufacture pure cuts C12 C14 during the period of investigation, though it does have the capacity and capability to manufacture pure cuts C12 and C14.

A Coram comprising of Justice Dilip Gupta, President, Mr P V Subba Rao., Member (Technical) and  Ms Rachna Gupta,  Member (Judicial) observed that there is no error in the finding recorded by the designated authority in including pure cuts C12 and C14 in the product under consideration.

The Tribunal allowed the modification of the “product under consideration‟ to “Saturated Fatty Alcohol with a carbon chain length of C12, C14, C16 and C18 including single, blends and unblended which includes blends of a combination of carbon chain lengths C12-C14, C12-C16, C12-C18, C16-C18 and C14-C16”.

To Read the full text of the Order CLICK HERE

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