2005 (5) TMI 643 - HC - Indian Laws

Summary

Issues Involved:
1. Jurisdiction of the Designated Authority to initiate anti-dumping investigations.
2. Maintainability of the writ petition on the grounds of prematurity and territorial jurisdiction.
3. Compliance with Rule 5 of the Anti-Dumping Rules.
4. Adequacy and accuracy of evidence provided for initiating investigation.

Issue-wise Detailed Analysis:

1. Jurisdiction of the Designated Authority to Initiate Anti-Dumping Investigations:
The petitioner challenged the initiation of the investigation on the grounds that the Designated Authority acted without jurisdiction and did not adhere to the mandatory provisions of Rule 5 of the Anti-Dumping Rules. The petitioner argued that the complainant did not have the required standing to file the petition as their production was less than 25% of the total production in the country. The petitioner also pointed out that the Designated Authority failed to examine the adequacy and accuracy of the evidence provided before initiating the investigation.

2. Maintainability of the Writ Petition on Grounds of Prematurity and Territorial Jurisdiction:
The respondents raised preliminary objections regarding the maintainability of the writ petition, arguing that it was premature as it challenged only the initiation of the investigation and not any final or preliminary findings. They contended that the petitioner should participate in the investigation and could challenge any adverse findings later. The respondents also argued that the writ petition was not maintainable on the grounds of territorial jurisdiction, as the cause of action arose outside the State of Rajasthan, where the petition was filed. The petitioner's registered office and corporate office were located in Delhi and Gurgaon, respectively.

3. Compliance with Rule 5 of the Anti-Dumping Rules:
The petitioner argued that the Designated Authority did not comply with the mandatory requirements of Rule 5 for initiating an investigation. Rule 5 stipulates that an investigation can only be initiated upon receipt of a written application by or on behalf of the domestic industry, supported by evidence of dumping, injury, and a causal link between the dumped imports and the alleged injury. The petitioner contended that the Designated Authority failed to determine whether the application was made by or on behalf of the domestic industry and did not examine the adequacy and accuracy of the evidence provided.

4. Adequacy and Accuracy of Evidence Provided for Initiating Investigation:
The petitioner argued that the evidence provided by the complainant was inadequate and inaccurate. The complainant had given contradictory figures of production for the same period, and the information sought from manufacturers was for compressors with a capacity up to 600 BTU, whereas the investigation was initiated for compressors with a capacity up to 875 BTU. The petitioner claimed that the investigation was conducted in violation of the principles of natural justice, as the petitioner was not furnished with the necessary information.

Court's Findings:

Territorial Jurisdiction:
The court held that it had territorial jurisdiction to entertain the writ petition as the petitioner's factory was located in Rajasthan, and part of the cause of action arose within the jurisdiction of the court. The court referred to the judgments of the Supreme Court in the cases of Rajasthan High Court Advocate Association v. Union of India and Kusum Ingots and Alloys Ltd. v. Union of India, which held that even if a small fraction of the cause of action accrues within the jurisdiction of the court, the court will have jurisdiction in the matter.

Prematurity of the Writ Petition:
The court found that the writ petition was premature as it challenged only the initiation notification, which was akin to a show cause notice. The court referred to the judgments of the Supreme Court in the cases of Dr. Shashank v. Commissioner of Customs, Union of India v. Polar Marmo Agglomerates, and CCE v. Charminar, which held that a writ petition against a show cause notice is not maintainable. The court concluded that the petitioner should participate in the investigation and could challenge any adverse findings later.

Compliance with Rule 5:
The court did not delve into the merits of the petitioner's arguments regarding the compliance with Rule 5, as it found the writ petition to be premature. Consequently, the court did not discuss the adequacy and accuracy of the evidence provided for initiating the investigation.

Conclusion:
The court dismissed the writ petition as premature, holding that it was not maintainable against the initiation notification, which was akin to a show cause notice. The court did not address the merits of the petitioner's arguments regarding the jurisdiction of the Designated Authority and compliance with Rule 5 of the Anti-Dumping Rules. The interim order granted by the court was also vacated.