No Chinese Link Found in Alloy Wheel Imports from Taiwan: CESTAT quashes ₹4.62 Crore ADD Demand [Read Order]

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) ruled that anti-dumping duty (ADD) could not be imposed on Neo Wheels Ltd. for importing semi-finished aluminum alloy wheels, as there was no evidence proving the goods originated from China.

Sanjay Kacheria, the Managing Director of Neo Wheels Ltd. The company is a manufacturer of alloy wheels engaged in both domestic sales and exports. Between December 2014 and February 2017, the company imported semi-finished aluminum alloy wheels from Taiwan. These goods were assessed and cleared by customs based on certificates of origin indicating Taiwan as the source.

The Customs Department issued a show cause notice in 2018, alleging that the company routed Chinese-origin goods through Taiwan to evade the anti-dumping duty of USD 2.15 per kg imposed on Chinese alloy wheels.

A supplementary notice followed in 2019. The department relied on invoice patterns, matching model numbers, and a letter from the Indian Consulate in Hong Kong, which mentioned that one Taiwanese company had imported alloy wheels from China.

The appellant’s counsel argued that all goods were lawfully imported from Taiwan, supported by valid certificates of origin that were accepted during customs assessment. They further argued that there was no import from Futek Alloy Co. Ltd., the only Taiwanese firm named in the consulate’s letter as sourcing wheels from China. The counsel submitted that no evidence linked any of the 30 consignments under dispute to Chinese origin.

The department countered that the similarity in invoice formatting and product codes between Chinese and Taiwanese suppliers indicated circumvention. It argued that the goods were essentially Chinese but mis-declared to avoid anti-dumping duty.

The two-member bench comprising Anil G. Shakkarwar (Technical Member) and Dr. Suvendu Kumar Pati (Judicial Member) observed that there was no conclusive evidence showing that the goods were manufactured or shipped from China. The tribunal further observed that none of the 30 bills of entry involved imports from Futek Alloy Co. Ltd. or Fortune Rainbow, the companies referenced in the consulate letter.

The tribunal explained that suspicion cannot replace proof and that all assessments were finalized lawfully without being appealed by the revenue. As there was no valid basis to demand an anti-dumping duty or impose penalties, the tribunal set aside the order and allowed all three appeals.

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