2016 (4) TMI 51 - AT - Customs

Demand of anti-dumping duty - Import of 4,40,000 pieces of Hard Ring Ferrite - Held that - the Adjudicating Authority has dropped the proceedings initiated by the show cause notice on the basis of the report dated 26-05-2000 from the Deputy Chief Chemist. It is noticed that anti-dumping duty was imposed on Hard Ring Ferrite Magnets by Notification No. 103/99 dated 06-08-1999. In order to levy anti-dumping duty, it has to be first ascertained that the goods imported were Hard Ring Ferrite Magnets. Here, the Adjudicating Authority has come to the conclusion that imported goods are not so as per the report of Deputy Chief Chemist that goods imported were not Hard Ring Ferrite Magnets. The appeal of the revenue does not indicate any contrary evidence to come to any other conclusion. Therefore, anti-dumping duty cannot be levied. - Decided against the revenue

Summary

Issues:
Confiscation and redemption fine on imported Hard Ring Ferrite Magnets; Dropping of show cause notice for anti-dumping duty; Adjudicating Authority's decision challenged by Revenue.

Analysis:
The appeal before the Appellate Tribunal CESTAT MUMBAI involved the issue of confiscation and redemption fine on 4,40,000 pieces of Hard Ring Ferrite Magnets imported under a specific Bill of Entry. The Adjudicating Authority had dropped the proceedings for demanding anti-dumping duty on these magnets, a decision contested by the Revenue authorities. The Tribunal noted that the Adjudicating Authority based its decision on a report from the Deputy Chief Chemist, which stated that the imported goods were not Hard Ring Ferrite Magnets as per the relevant notification imposing anti-dumping duty. The Tribunal observed that for anti-dumping duty to apply, it must be established that the imported goods meet the specified criteria, which was not the case here according to the Deputy Chief Chemist's report. The Revenue failed to provide any contrary evidence to challenge this conclusion.

In light of the above analysis, the Tribunal found that the impugned order was legally sound and devoid of any flaws. Consequently, the Tribunal upheld the decision of the Adjudicating Authority to drop the proceedings for anti-dumping duty on the imported Hard Ring Ferrite Magnets. The appeal filed by the Revenue was deemed to lack merit and was rejected by the Tribunal.