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2015 (10) TMI 493 - HC - CustomsLevy of anti dumping duty - indiscriminate dumping of fused magnesia from China - Held that - Complaint of M/s. Birla Periclase, at whose instance the duty was imposed was not genuine and the losses suffered by it were on account of some other factors. A specific recommendation is made for withdrawal of the duty with retrospective effect. With that, the case of the petitioner becomes strengthened. It is not known as to whether any formal order has been issued to give effect to the order, dated 09.06.2003 passed by the 2nd respondent. - Petition disposed of certain directions.
Issues:
Challenge to imposition of antidumping duty on imported raw material. Analysis: The petitioner, a manufacturer of refractory bricks, imported a substantial quantity of raw material, fused magnesia, from China. Another company complained about the dumping of this material, leading to the imposition of antidumping duty by respondents 1 and 2. The petitioner challenged this duty imposition, stating that the duty was affecting its operations. The Central Excise Board and Appellate Tribunal set aside the duty imposition orders, but the 2nd respondent challenged this decision in the Supreme Court without obtaining a stay, resulting in the continued levying of the duty. In response, the respondents defended their actions, stating that they were considering representations from organizations opposing the duty. The court acknowledged the authority of respondents to levy duty to protect domestic industries and raw material supplies. However, a significant development occurred during the case, where it was revealed that the closure of the complaining company's factory was due to various factors, not just Chinese dumping. After a detailed review, the 2nd respondent recommended the retrospective withdrawal of the antidumping duty on fused magnesia from 01.10.1999, as the complaint was deemed not genuine. The court, considering these findings, disposed of the writ petition. It directed that if the 2nd respondent's order for duty withdrawal had been formally issued, no duty should be levied on the petitioner. The parties were also instructed to await the outcome of related civil appeals. The judgment concluded by disposing of the miscellaneous petition without any cost orders.
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