Madras HC Upholds Continuation of ADD on Viscose Staple Fibre Imports from Indonesia Despite 11-Day Gap Between Expiry and Extension [Read Order]
The Madras HC upholds the validity of continuing ADD on Indonesian Viscose Staple Fibre imports despite an 11-day gap as the review was initiated before the original levy expired.
Viscose Staple Fibre
Viscose Staple Fibre
In a recent ruling, the Madras High Court dismissed a set of writ petitions filed by PT South Pacific Viscose challenging the continuation of anti-dumping duty (ADD) on imports of Viscose Staple Fibre (VSF) from Indonesia despite a gap of eleven days between the expiry of the original notification and the extension.
PT South Pacific Viscose, an Indonesian exporter, filed writ petitions challenging orders by the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) and notifications issued by the Directorate General of Trade Remedies (DGTR) and the Union of India extending the ADD.
The petitioner’s counsel argued that under the Supreme Court’s ruling in Kumho Petrochemicals, ADD cannot be extended once the original levy expires, and pinpointing the eleven-day gap between the expiry of the initial levy on 25.07.2015 and the extension issued on 06.08.2015 as rendering the extension invalid.
The petitioner’s counsel argued that the sunset review and subsequent notifications violated the Customs Tariff Act, 1975, as ADD can only be extended if it is in force at the time of extension. It was further argued that altering the scope of the product under consideration during the sunset review without providing an opportunity to respond breached principles of natural justice.
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The respondents’ counsel, including the Union of India and DGTR, argued that the sunset review had been initiated before the expiry of the initial five-year period, and the extension of ADD was legally valid under Section 9A(5) of the Customs Tariff Act. They argued that minor procedural gaps did not invalidate the levy and that the Kumho Petrochemicals case did not bar continuation when a review is initiated before expiry, even if the notification is issued later.
A division bench led by Justice R. Suresh Kumar and Justice C. Saravanan observed that the sunset review had commenced before the expiry of the original levy and that the eleven-day gap did not invalidate the extension of ADD.
The court also observed that the petitioner’s reliance on the Kumho Petrochemicals ruling was misplaced, as the decision only applied where the review itself was initiated after the expiry of the levy. The court further observed that the petitioner should have approached the Delhi High Court or the Supreme Court under Section 130E of the Customs Act, given that the case related to the rate of duty, and noted that writ petitions were not the appropriate remedy in such cases.
The court ruled that the continuation of ADD on VSF imports from Indonesia was valid, despite the eleven-day gap between expiry and extension. It dismissed the writ petitions filed by PT South Pacific Viscose.
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