A Three Member bench of the CESTAT comprising President Justice Dilip Gupta, Sulekha Beevi C.S, Judicial Member and P.V. Subba Rao, Technical Member has directed the Designated Authority to re-consider the levy of Anti-Dumping Duty on Viscose Staple Fibre for a further five years.
The bench was considering a bunch of appeals led by the Association of Man-Made Fibre Industry of India.
The appellants prayed that the final findings dated 30.07.2021 of the designated authority rendered in the Second Sunset Review be modified and it be held that there is a likelihood of recurrence of dumping and injury in the event of expiry of duty. The appellants further prayed “to hold that anti- dumping duty on the subject goods needs to continue for further period of five years against subject countries”. The appellant has also sought quashing of the Customs Notification No. 44/2021-Customs (ADD) dated 12.08.2021 issued by the Central Government with a direction to the Central Government to issue a notification levying anti-dumping duty for a period of five years.
After hearing arguments from both the sides, the Tribunal bench has observed that “the designated authority should reexamine whether the cessation of anti-dumping duty would likely lead to continuation or recurrence of injury so as to warrant the imposition of anti-dumping duty for a further period of five years.”
“It needs to be noted that the designated authority had recorded a categorical finding that cessation of anti-dumping duty would lead to continuation or recurrence of dumping and even with regard to the injury aspect, the designated authority did hold that cessation of anti-dumping duty would lead to continuation or recurrence of injury, but it further held that such injury was not strong enough to warrant continuation of anti-dumping duty for a further period of five years. Thus, all that would have to be re-examined by the designated authority, on remand, is as to whether cessation of anti-dumping duty would likely lead to continuation or recurrence of injury warranting imposition of anti-dumping duty for a further period of five years.”
The Tribunal further held that the findings recorded by the Competition Commission of India would have no relevance when the designated authority proceeds to take a decision in the context of imposition of anti-dumping duty for the reason that the Tariff Act and the Competition Act, 2002 operate in different fields.
Allowing the appeal partly, the Tribunal held that the designated authority shall reexamine and give a fresh finding as to whether cessation of anti-dumping duty would likely lead to continuation or recurrence of injury so as to warrant imposition of anti-dumping duty for a further period of five years.
“The final findings dated 30.07.2021 of the designated authority, therefore, stand modified to this extent. The final findings shall thereafter, be submitted to the Central Government for further action in accordance with the provisions of the Tariff Act,” the Tribunal said.
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