2015 (3) TMI 991 - AT - Customs

Levy of anti dumping duty - Whether the goods imported namely Decorative Ink Printed MDF Board imported from Thailand are to be subjected to anti dumping duty under this notification - Confiscation of goods - Imposition of redemption fine and penalty - Held that - The respondent claims that since these Boards are ink printed on one side, they cannot be called Plain MDF Board. It would be useful to refer to the finding of the DGAD on the anti-dumping investigations on imports of MDF Board into India. The preliminary finding of the DGAD dt. 2.2.2009 as brought out in Revenue s appeal stated that MDF Board is produced in two forms plain & laminated. Lamination is additional processing, which is done after production of plain board, Laminated board is beyond the scope of the product under consideration. - It is apparent from the findings of DGAD that only laminated and other than laminated Boards were considered for investigation. No distinction was made between Plain and Ink Printed Boards. It would appear that the words used in the notification namely Plain MDF Board only reflect to the planeness of the Board. In other words, only laminated board would be outside the purview of the anti dumping notification. Even in common parlance, if an item such as a table is called a Plain Table, it would not mean that tables which are polished or coloured would not be considered as plain table. - Goods imported by the respondent being non laminated are covered under Notification No. 116/2009-Cus and leviable to anti-dumping duty. - Decided against the assessee. Levy of penalty and redemption fine - Held that - The matter could be subject to interpretation in the minds of some people, in view of the wording of the notification. - The importer cannot be blamed for betraying the trust put on him by allowing self-assessment, as observed by the adjudicating authority. No case is made of deliberate intention to avoid payment of anti dumping duty. Therefore, we set aside the confiscation, consequent redemption fine and penalty under Section 112(a) of the Customs Act. - Decided partly in favour of Revenue.

Summary

Issues Involved:
Interpretation of Notification No. 116/2009-Cus regarding the imposition of anti-dumping duty on imported Decorative Ink Printed MDF Boards.

Analysis:
1. Issue: Whether the Decorative Ink Printed MDF Boards imported are subject to anti-dumping duty under Notification No. 116/2009-Cus.
- The respondent argued that the boards, being ink printed, do not fall under the category of Plain MDF Boards.
- The DG Anti-dumping findings clarified that only laminated boards were excluded from the scope of the product under consideration.
- The notification described the goods as "plain Medium Density Fibre Board of thickness of 6mm and above," focusing on the planeness of the board.
- The tribunal emphasized that the word "plain" should be understood in simple terms without additional interpretations.
- Commercial invoices showed no clear distinction between Plain MDF and Inked MDF Boards in trade parlance, supporting the imposition of anti-dumping duty.

2. Issue: Interpretation of the notification's wording and legislative intent.
- The tribunal highlighted that the notification should be read in straight terms to fulfill the legislative intent without adding extraneous meanings to the word "plain."
- The judgment of Hemraj Gordhandas case supported the straightforward interpretation of notifications without ambiguity.
- The tribunal concluded that even with ink printing, a Plain Board would remain classified as such, rejecting the argument against the imposition of anti-dumping duty.

3. Decision:
- The tribunal held that the imported non-laminated boards are covered under Notification No. 116/2009-Cus and are liable for anti-dumping duty.
- While acknowledging potential interpretation issues due to the notification's wording, the tribunal found no deliberate intention to avoid duty payment by the importer.
- Consequently, the confiscation, redemption fine, and penalty under Section 112(a) of the Customs Act were set aside, partially allowing the appeal.

This detailed analysis of the judgment provides a comprehensive understanding of the issues involved and the tribunal's decision regarding the imposition of anti-dumping duty on the imported Decorative Ink Printed MDF Boards.