2017 (7) TMI 276 - SC - Customs

Anti Dumping duty - Whether Anti Dumping Duty is applicable on flat roll product of stainless steel having width between 1250 mm to 1280 mm under N/N. 14/2010-Cus., dated 20.02.2010 as amended by N/N 86/2011-Cus, dated 06.09.2011? - Held that - From the narration of facts, particularly mid term review culminating in Notification dated 06.09.2011, it becomes clear that tolerance level of 30 mm is to be taken into account. In this manner, if the width is between 1251 mm to 1280 mm, the anti dumping duty would be payable as per the Notification. The learned counsel for the respondents could not dispute that the imports are of the period after the issuance of the Notification dated 06.09.2011 and the width of their product was between 1251 mm to 1280 mm. These imports were, therefore, clearly liable for anti dumping duty - The CESTAT while deciding the appeal in favour of the responents did not consider the impact of review Notification dated 06.09.2011 in its proper prospects, therefore, order of CESTAT set aside - appeal allowed.

Summary

Issues:
1. Applicability of Anti Dumping Duty on flat roll product of stainless steel within a specific width range under relevant notifications.
2. Interpretation of tolerance limits specified in the Notification dated 08.06.2011.
3. Determination of liability for anti dumping duty based on the width of imported stainless steel products.
4. Impact of re-exportation on the obligation to pay anti dumping duty.

Analysis:
1. The Supreme Court addressed the issue of whether Anti Dumping Duty applied to flat roll products of stainless steel within a particular width range under relevant notifications. The Court noted that a mid-term review was conducted due to concerns raised by the indigenous industry regarding the absence of tolerance limits for product dimensions in the original investigation. Consequently, a Notification dated 08.06.2011 was issued specifying tolerance limits for width, indicating that products with widths between 1251 mm to 1300 mm were also subject to anti dumping duty. The Court held that imports falling within this range after the issuance of the Notification were liable for anti dumping duty, even if the width was more than 1250 mm but less than 1300 mm.

2. The Court delved into the interpretation of the tolerance limits specified in the Notification dated 08.06.2011. It emphasized that the tolerance level of +30 mm was crucial in determining the applicability of anti dumping duty. Products with widths between 1251 mm to 1280 mm fell within the prescribed tolerance limits and were therefore liable for the duty as per the Notification. The Court clarified that the proper consideration of these tolerance limits was essential in determining the obligation to pay anti dumping duty on imported stainless steel products.

3. Regarding the determination of liability for anti dumping duty based on the width of imported stainless steel products, the Court highlighted that the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) had erred in not considering the impact of the review Notification dated 06.09.2011. The Court emphasized that imports falling within the specified width range subject to the tolerance limits were clearly liable for anti dumping duty. Consequently, the Court allowed the appeal filed by the Revenue and set aside the CESTAT's decision in favor of the respondents.

4. In the case of goods that were not cleared and were re-exported, the Court addressed the issue of whether the obligation to pay anti dumping duty still applied. The Court acknowledged the respondents' argument that since the goods were re-exported, the question of anti dumping duty payment did not arise. Consequently, the Court dismissed the appeal in this regard, upholding the CESTAT's decision to set aside the demand for anti dumping duty based on the re-exportation of the goods.