2017 (5) TMI 797 - AT - Customs

Scope of levy of ADD - glass woven roving - case of Revenue is that only glass woven roving which are meant for thermoplastic applications are excluded from the scope of glass woven roving which is a specified item for the purpose of levy of ADD - Held that - Chartered Engineer opines that glass woven roving are mainly used for a manufacture of various items mentioned therein and are not used in the thermoplastic application. If that be so the Revenue s interpretation of the notification that only those glass woven rovings which are used only for thermoplastic applications are exempted cannot be accepted in absence of any substance to the contrary - ADD not levied on glass woven roving - appeal dismissed - decided against Revenue.

Summary

Issues:
1. Interpretation of notification regarding Anti-Dumping Duty on imported goods.
2. Exclusion of glass woven rovings from the levy of Anti-Dumping Duty.

Analysis:
1. The case involved a dispute over the payment of Anti-Dumping Duty on 'fibre glass woven roving' imported from China. The notification in question excluded glass woven roving from the levy of duty. The Revenue contended that only glass woven roving meant for thermoplastic applications should be excluded.

2. The Revenue's argument was supported by an opinion from an independent Chartered Engineer, stating that thermoplastic materials are used for shaping and molding, while glass woven roving is mainly used for hand lay-up of products like storage tanks and cooling towers, not for thermoplastic applications. The Director General of Anti-Dumping & Allied Duties also clarified that glass woven rovings are excluded from the scope of the notification.

3. The respondent argued that glass woven rovings are not used for thermoplastic applications and that the Revenue's interpretation was incorrect. They emphasized that the Director General's clarification should be accepted as they are the investigating authority for proposing Anti-Dumping duty.

4. The Tribunal noted that the Chartered Engineer's opinion and the Director General's clarification supported the view that glass woven rovings were not meant for thermoplastic applications. As the investigating authority responsible for proposing Anti-Dumping duty had clarified the exemption, the Tribunal upheld the Commissioner (Appeals)'s decision and rejected the Revenue's appeal.