2021 (3) TMI 925 - AT - Customs

Levy of Anti-Dumping Duty - citric acid monohydrate - term of notification on 23rd November 2003 expired, by which the duty was levied on the subject item - section 9B of Customs Tariff Act, 1975 - HELD THAT - The appellant is correct in pointing out that the cited provisions of the Export Import Policy are intended to protect importers from detriments arising from restrictive impositions under the policy mechanism after effecting shipment from port of export. Levy of duties is governed by section 15 of Customs Act, 1962 in accordance with which duties existing on the date of filing of bill of entry imposes liability. As notification no. 78/2000-Customs dated 26th May 2000 had ceased to have effect from 23rd November 2003, imports against bill of entry no. 933758/15.12.2003 could not, irrespective of origin, be subjected to duty thereon. Accordingly, liability to anti-dumping duty is limited to the import of 66 metric tons against bill of entry no. 700/19.11.2003; while upholding the demand of ₹ 29,35,142.43 the rest is held to be not sustainable. Appeal allowed in part.

Summary

Issues:
1. Challenge to order-in-original regarding anti-dumping duty on imported goods.
2. Origin of imported goods and applicability of anti-dumping duty.
3. Interpretation of Export Import Policy provisions in relation to Customs Act.

Analysis:
1. The appellant challenged the order-in-original regarding anti-dumping duty on imported 'citric acid monohydrate'. The goods were imported from Shanghai, China, but claimed to be from Republic of Korea. The adjudicating authority imposed a duty of &8377; 38,99,602 under notification no. 78/2000-Customs dated 26th May 2000.

2. The appellant contended that the duty liability ceased with the expiry of the notification on 23rd November 2003 and that the goods did not originate from Peoples’ Republic of China. However, the tribunal found no evidence to counter the trace records indicating the source as China. The tribunal upheld the duty liability based on the origin of the goods.

3. The tribunal considered the provisions of the Export Import Policy and Customs Act. It noted that duties are governed by section 15 of the Customs Act, 1962, and liability is imposed based on the date of filing the bill of entry. As the notification ceased to have effect, imports after 23rd November 2003 could not be subjected to duty. The tribunal limited the liability to the import of 66 metric tons against a specific bill of entry.

In conclusion, the tribunal partly allowed the appeal by modifying the impugned order to limit the liability to anti-dumping duty on the import of 66 metric tons against a specific bill of entry, while holding the rest of the demand as not sustainable.