The Gujarat High Court Division Bench of Justice N V Anjaria and Justice Bhargav D Karia has quashed set aside the Notification issued by the Government of India rescinding the countervailing duty(CVD) and directed to proceed with the sunset review process in relation to the continuance or otherwise already commenced.
The first respondent, Central Government, suspended the countervailing duty as per the Notification dated 01.02.2021 followed by its extension in subsequent notification dated 30.09.2021 till 31.01.2022 and thereafter permanently withdrew the duty as per the impugned Notification dated 01.02.2022. It was despite the ongoing Sunset Review, investigation for extension of duty for further five years, that respondent no.1 proceeded to rescind the duty.
The Notification dated 1.2.2022 issued by respondent No.1 rescinding the countervailing duty which was imposed by Notification dated 7.9.2017 for five years was challenged in this Special Civil Application.
Section 9 and section 9-A in the Customs Tariff Act, 1975 came to be enacted and the rules regarding imposition of countervailing duty and anti-dumping duty came to be framed.
Mihir Joshi, appearing for the Petitioners, submitted that, as per the scheme of the Act read with the GATT agreement, respondent no.1 does not have any inherent or suo-motu powers to impose, modify or withdraw the countervailing duty in absence of recommendations.
ASG Devang Vyas, submitted on behalf of the respondents that the decision of the Central Government in issuing the Notification rescinding the countervailing duty was guided by considerations of public interest. It was sought to be highlighted that in the Union budget speech 2022-23, the decision to revoke the countervailing duty was announced. He also submitted that the decision was also laid before the parliament.
The Division Bench observed that, “The Central Government acted without availability of foundational aspects and jurisdictional facts to proceed to issue the notification. Conferring such licence and power to act in such a way on the Central Government would be extending unfettered and arbitrary powers” and quashed the notification, directing the Central Government to proceed with the Sunset review.
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