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Issues Involved:
1. Initiation of Anti-Dumping Investigation 2. Determination of Normal Value 3. Determination of Export Price 4. Determination of Dumping Margin 5. Causal Link between Dumped Imports and Injury to Domestic Industry 6. Determination of Non-Injurious Price Detailed Analysis: 1. Initiation of Anti-Dumping Investigation: The Designated Authority (DA) initiated an anti-dumping investigation based on a petition filed by M/s. Alkali Manufacturers Association of India (AMAI) alleging dumping of Sodium Hydroxide (Caustic Soda) from China and Korea. The DA verified the accuracy and adequacy of the evidence provided in the application, which included normal value based on secondary sources and constructed normal value for China. The DA determined that there was sufficient prima facie evidence of dumping, injury, and causal link to justify the initiation of the investigation. 2. Determination of Normal Value: The normal value for M/s. Hanwha Chemical Corporation was determined based on transaction-wise details of domestic sales during the Period of Investigation (POI). The DA followed para 2(i) of Annexure-1 to the Anti-Dumping Rules, excluding transactions where goods were sold below per unit cost if they represented less than 20% of the volume sold. The DA used weighted average freight costs to determine the ex-factory price, which was found to be correct and did not require modification. 3. Determination of Export Price: The export price was defined under Section 9A(1)(b) of the Customs Tariff Act. For M/s. Hanwha Chemical Corporation, the export price was determined based on the CIF export price from Korea to India, with deductions for ocean freight, insurance, port charges, and commissions to reach the ex-factory price. The DA correctly determined the export price, including an adjustment of $4.57/MT for previous transaction sales to M/s. Tricon. 4. Determination of Dumping Margin: The DA made a fair comparison between the export price and the normal value to determine the margin of dumping. For M/s. Hanwha Chemical Corporation, the margin of dumping was -4.2%, while for other non-cooperative exporters from Korea, it was determined based on normatted export prices and domestic prices published in Chlor Alkali Magazine. 5. Causal Link between Dumped Imports and Injury to Domestic Industry: The DA examined whether the injury to the domestic industry was caused by dumped imports or other factors such as obsolete machinery and high electrical costs. The DA determined that these factors were considered while determining the non-injurious price. However, the DA did not apply the same principle of cost separation between caustic soda and chlorine for the domestic industry as it did for M/s. Hanwha Chemical Corporation, leading to incorrect determination of the non-injurious price. 6. Determination of Non-Injurious Price: The DA used verified cost of production data to determine the non-injurious price for the domestic industry. However, the DA treated chlorine as a by-product rather than a co-product, leading to an inequitable distribution of production costs. The DA also took 22% of capital investment as profit for working out the non-injurious price, which was found to be reasonable. The Tribunal concluded that the non-injurious price was not correctly determined due to the incorrect allocation of production costs between caustic soda and chlorine. Final Order: The Tribunal set aside Notification No. 142/2003-Cus. dated 23-9-2003 and the final findings of the DA on non-injurious price and injury margin. The case was remanded to the DA for fresh determination of non-injurious price and injury margin by reasonably and equitably distributing the cost of production between chlorine and caustic soda, and to issue final findings afresh in accordance with the law and the judgment. All appeals and miscellaneous applications were disposed of accordingly.
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