2017 (11) TMI 491 - AT - Customs

Imposition of ADD - color coated aluminium foil - import from China PR - whether or not printed or backed with paper, paper board, plastics or similar packing materials of a thickness ranging from 5.5 micron to 80 micron excluding Alu Alu Laminate and Ultra Light Gauge Converted and Capacitor? - Held that - The product type, admittedly covers a vide variety of finished goods - the product specification of Chinese producers and the Domestic Industry did indicate the overall coverage of scope of the said goods. The appellants are submitting to make a fine distinction on certain qualities. As already noted, we do not appreciate that the scope of investigation and the imposition of Anti Dumping duty can be varied on such a fine distinction of certain qualities, the existence of the same itself has not been established categorically by the appellants - appeal dismissed - decided against appellant.

Summary

Issues Involved:
1. Exclusion of colour coated aluminium foil from the scope of product under consideration for imposition of Anti Dumping Duty.
2. Exclusion of Ultra Light Gauge (ULG) foil and aluminium foil of alloy 8021 below 40 microns from the scope of product under consideration for imposition of Anti Dumping Duty.

Issue-Wise Detailed Analysis:

1. Exclusion of Colour Coated Aluminium Foil:
The appellants argued that the Designated Authority (DA) did not record a separate finding on excluding colour coated aluminium foil from the scope of the Anti Dumping (AD) investigation and imposition of AD duty. They contended that this type of foil is a critical raw material for manufacturing aluminium composite panels and is not produced domestically. The Domestic Industry (DI) supported this claim, stating they do not manufacture colour coated aluminium foil, and thus, its import does not cause them injury.

The DA admitted there was no specific finding regarding colour coated aluminium foil. The Tribunal noted the absence of specific exclusion in the final findings and agreed with the appellants' and DI's consensus that colour coated aluminium foil should be excluded from the scope of AD duty. Consequently, the Tribunal ordered the exclusion of colour coated aluminium foil from the AD duty imposed by the Customs Notification dated 16/05/2017, amending the notification to include this exclusion.

2. Exclusion of Ultra Light Gauge (ULG) Foil and Aluminium Foil of Alloy 8021 below 40 Microns:
The appellants in these appeals contested the non-exclusion of ULG foil and aluminium foil of alloy 8021 below 40 microns, arguing that these types do not meet the quality standards required by the user industry and are not manufactured domestically. They also challenged the DA's findings based on aluminium prices without reference to London Metal Exchange (LME) rates.

The DA provided a detailed analysis, noting that the domestic industry has the capacity to produce ULG foil, including the 5.5-micron variant, and that the pinhole count in domestic foil meets the required standards. The DA also addressed the capacity concerns, stating that the domestic industry, particularly Hindalco, has significant capacity and potential to meet the demand for ULG foil.

Regarding the exclusion of ULG foil with a width of 1800 mm, the DA found no evidence of such imports and noted that the product is eventually consumed in much smaller widths, making the domestic and imported products interchangeable. The DA concluded that the demand-supply gap does not justify dumping and that foreign producers can fill the gap at fair prices.

The Tribunal found no merit in the appellants' arguments, agreeing with the DA's detailed findings and analysis. The Tribunal dismissed the appeals, upholding the inclusion of ULG foil and aluminium foil of alloy 8021 below 40 microns in the scope of the AD duty.

Conclusion:
The Tribunal allowed the appeals for the exclusion of colour coated aluminium foil from the scope of AD duty but dismissed the appeals for the exclusion of ULG foil and aluminium foil of alloy 8021 below 40 microns, supporting the DA's findings and the Customs Notification imposing AD duty on these products.