2017 (1) TMI 136 - AT - Customs

Imposition of ADD - Purified Terephthalic Acid - import from China PR, Iran, Indonesia, Malaysia and Taiwan - exclusion of RIL from the purview of the domestic industry - Held that - RIL had disclosed that they are related to the company in Malaysia, who is the sole producer of the subject goods in that country - the related company of RIL, located in Malaysia, is exporting substantial quantity to India. We find that the DA s findings on this ground cannot be assailed. Correctness of considering MCPI as a domestic industry for injury analysis in view of the fact that the said unit is sick and is under BIFR - Held that - MCPI has not imported the product under consideration in India during the relevant period from any of the exporters, who were related to them. The injury of domestic industry has been properly analysed and we find no reason to disagree with the DA on this account. Cumulative assessment is proper subject to fulfillment of certain conditions. The dumping margin in the case of China is 20 to 30% and the quantum of export is above 3%. The subject goods imported from China are in direct competition with the like articles made in India. As such, the conditions for commutations are met. Violation of principles of natural justice - Held that - though originally the IOCL was only supporting the petitions filed by the other domestic industry, later they have provided some data regarding production, sales and profitability of subject goods during the POI, on confidential basis. We note that the DA has not considered the said data for injury analysis and investigation - no ground to sustain the plea of the appellant regarding violation of principles of natural justice. RIL has been disqualified as an eligible domestic industry for the reason of their related company situated in Malaysia producing and exporting the subject goods to India. We find no justification on legal basis for a separate investigation with reference to Malaysia and other countries. ADD rightly imposed - appeal rejected - decided against appellant.

Summary

Issues:
Challenge against imposition of Anti-dumping duty on import of Purified Terephthalic Acid (PTA) into India from specific countries.
1. Exclusion of a domestic industry player from the investigation.
2. Conduct of cumulative investigation for injury determination.
3. Alleged violation of principles of natural justice.
4. Injury analysis based on data from a sick company.
5. Request for separate assessment for Malaysia and other subject countries.

Analysis:

1. The appellant contested the exclusion of a domestic industry player, Reliance Industries Ltd. (RIL), from the investigation. The tribunal found that RIL's relationship with a Malaysian producer exporting substantial quantities to India justified its exclusion. The tribunal upheld the decision of the designated authority (DA) based on Rule 2(b) of the Anti Dumping Rules, emphasizing the need for reasonable exclusion criteria and distinguishing this case from previous investigations.

2. The appellant argued for separate investigations for different subject countries, specifically Malaysia. However, the tribunal supported the DA's decision for a cumulative assessment based on specific conditions being met, such as significant dumping margins and direct competition with Indian products. The tribunal highlighted the DA's appropriate reasoning and findings in the final report.

3. Allegations of violating principles of natural justice were raised due to undisclosed data provided by Indian Oil Corporation Ltd. (IOCL) during the investigation. The tribunal noted that the DA did not consider this data for injury analysis, as explicitly stated in the final findings. Consequently, the tribunal dismissed the appellant's claim of natural justice violations.

4. Concerns regarding injury analysis based on data from a sick company, MCCPTA India Corporation Pvt. Ltd., were addressed by the DA, who attributed the injury to various factors beyond technical problems. The tribunal agreed with the DA's assessment, emphasizing the impact of imports on MCPI's financial metrics and dismissing objections related to MCCPTA's inclusion in the domestic industry.

5. The appellant's request for separate assessment for Malaysia and other subject countries was rejected by the tribunal. Citing the Anti Dumping Rules, the tribunal emphasized the need to evaluate injury to the domestic industry collectively, especially after disqualifying RIL as a domestic industry due to its Malaysian connections. The tribunal found no legal basis for conducting separate investigations based on country distinctions.

In conclusion, the tribunal upheld the imposition of Anti-dumping duty on PTA imports from subject countries, rejecting the appeals due to the lack of factual or legal grounds against the final findings and customs notifications. The miscellaneous applications linked to the appeals were also disposed of accordingly.