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2022 (2) TMI 266 - HC - Customs


Issues Involved:
1. Imposition and extension of anti-dumping duty on PVC Flex Films imported from China.
2. Validity and implications of the Designated Authority's recommendation to withdraw the anti-dumping duty.
3. Urgency and feasibility of hearing the pending appeal before the CESTAT.
4. Interim relief and stay on the operation of the Notification dated 24th January 2022.

Issue-wise Detailed Analysis:

1. Imposition and Extension of Anti-dumping Duty on PVC Flex Films Imported from China:
The writ applicants sought the continuation of anti-dumping duty on PVC Flex Films originating from China, which was initially imposed by a Notification dated 08.08.2016 for five years and extended for six months by a Notification dated 30.06.2021 pending a sunset review. The applicants argued that the duty was necessary to protect the domestic industry from injury due to dumped imports.

2. Validity and Implications of the Designated Authority's Recommendation to Withdraw the Anti-dumping Duty:
The Designated Authority, after a detailed investigation, recommended the withdrawal of the anti-dumping duty on 28.10.2021. The Authority concluded that the volume of imports from China had significantly declined, and there was no conclusive evidence of injury to the domestic industry attributable to dumped imports. The Authority also questioned the reliability of the report used by the domestic industry to claim the likelihood of injury. Consequently, the Ministry of Finance issued Notification No. 3/2022-Customs ADD dated 24.01.2022, revoking the anti-dumping duty.

3. Urgency and Feasibility of Hearing the Pending Appeal Before the CESTAT:
The writ applicants filed an appeal (No. AD/52173/2021) before the CESTAT on 23.12.2021, challenging the recommendation to withdraw the anti-dumping duty. Despite multiple requests for urgent listing, the appeal remained pending due to the unavailability of a Special Bench. The court acknowledged the urgency of the matter and suggested that the Tribunal should hear the appeal expeditiously.

4. Interim Relief and Stay on the Operation of the Notification Dated 24th January 2022:
The court considered the balance of convenience and the potential irreparable injury to the domestic industry if the anti-dumping duty was not extended. It decided to stay the operation of Notification No. 3/2022-Customs ADD dated 24.01.2022 for six weeks and extend the operation of the original Notification dated 08.08.2016, as extended by the Notification dated 30.06.2021, for the same period. This interim relief was granted to allow the Tribunal to hear and decide the appeals within this period.

Conclusion:
The court directed that the Notification dated 24.01.2022 shall remain stayed for six weeks, and the Notification dated 08.08.2016, as extended by the Notification dated 30.06.2021, shall continue for six weeks. The Tribunal was instructed to hear and decide the appeals within this period. The court clarified that it had not examined the merits of the recommendations or the final Notification, leaving these aspects for the Tribunal to consider.

 

 

 

 

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