2023 (2) TMI 622 - AT - Customs

Levy of anti-dumping duty on the imported goods - import of Aluminium Alloy coils - N/N. 23/2017-Cus (ADD) dated 16.5.2017 - Applicability of ruling of Bombay High Court in favor of importer - HELD THAT - The disputed goods were described as Aluminium alloy foils while the goods under consideration by the Bombay High Court in MAHLE ANAND THERMAL SYSTEMS PRIVATE LIMITED VERSUS THE UNION OF INDIA, THROUGH JOINT SECRETARY, MINISTRY OF COMMERCE, DEPARTMENT OF COMMERCE ORS. 2022 (8) TMI 844 - BOMBAY HIGH COURT were Silico-Manganese-Aluminium alloy foils. The goods imported through Gandhinagar were described as Aluminium alloy foil. Learned authorised representative submitted that the nature of goods has to be seen and the disputed goods are different from the goods under consideration of the Bombay High Court and also the goods imported through Gandhinagar - This submission of the learned authorised representative for the Revenue cannot be accepted. Firstly, the composition of the disputed goods is not in question that they were an alloy of aluminium and so it cannot be presumed that the alloy had a different composition than the alloy under consideration before the Bombay High Court. Secondly, clause (vii) nowhere specifies that it excludes alloys of particular composition. Neither does the letter of the DG stipulate that the exclusion under clause (vii) was available only to a particular type of alloys. It is evident that it was not a relief provided to the petitioner but it is a ruling regarding interpretation of the notification. Therefore, its benefit will equally apply to anybody else. The impugned order cannot be sustained - Appeal allowed.

Summary

Issues Involved:
1. Levy of Anti-Dumping Duty on imported Aluminium Alloy coils.
2. Applicability of exclusion clause (vii) of Notification No. 23/2017-Cus (ADD) dated 16.5.2017.
3. Validity of the impugned order by the Commissioner of Customs (Appeals), New Delhi.

Issue-wise Detailed Analysis:

1. Levy of Anti-Dumping Duty on imported Aluminium Alloy coils:
The appellant, M/s. Hanon Climate Systems India Pvt. Ltd., imported Aluminium Alloy coils and filed two Bills of Entry dated 16.11.2017. The appellant did not include anti-dumping duty while self-assessing duty, arguing that the imported goods were covered by the exclusion clause (vii) of Notification No. 23/2017-Cus (ADD) dated 16.5.2017. The Deputy Commissioner disagreed and levied the anti-dumping duty, which the appellant paid under protest before appealing to the Commissioner (Appeals), who upheld the assessment.

2. Applicability of exclusion clause (vii) of Notification No. 23/2017-Cus (ADD) dated 16.5.2017:
The core dispute was whether the imported Aluminium Alloy coils fell under the exclusion clause (vii) of the notification, which exempts "Clad with compatible non-clad Aluminium Foil" used in automotive industry cooling systems from anti-dumping duty. The appellant argued that their goods were exempt based on this clause and provided a clarification from the Directorate General of Anti-Dumping duties (DG) stating that the domestic industry could not produce such products. The High Court of Bombay in Mahle Anand Thermal Systems Pvt. Ltd. Vs Union of India also ruled that unclad or non-clad aluminium foils for the automobile industry were exempt from anti-dumping duty under this notification.

3. Validity of the impugned order by the Commissioner of Customs (Appeals), New Delhi:
The Tribunal examined the submissions and evidence, including the DG's clarification and the High Court of Bombay's ruling. It was noted that the goods in question were described as Aluminium alloy foils, similar to those considered by the High Court. The Tribunal found no basis to distinguish the goods imported by the appellant from those exempted by the High Court ruling. The argument that the High Court's judgment in a writ petition under Article 226 should not automatically apply to all was rejected, as the ruling on the interpretation of the notification was deemed applicable universally.

Conclusion:
The Tribunal concluded that the impugned order by the Commissioner of Customs (Appeals) was unsustainable. It held that the imported Aluminium Alloy coils were covered by the exclusion clause (vii) of Notification No. 23/2017-Cus (ADD) dated 16.5.2017, and therefore, no anti-dumping duty was leviable. The appeal was allowed, and the impugned order was set aside with consequential relief to the appellant.

Pronouncement:
The judgment was pronounced in open Court on 15/02/2023.