The Customs, Excise & Service Tax Appellate Tribunal New Delhi ordered re-examination of dumping duty on Mono Ethylene Glycol imports.
Facts
M/s. Reliance Industries Limited, a domestic producer of Mono Ethylene Glycol in India, has filed the appeal to assail the Notification notifying that since the domestic industry had not suffered material injury in terms of the provisions contained in the Customs Tariff (Identification, Assessment and Collection of AntiDumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 it would not be appropriate to recommend levy of anti dumping duty on the import of MEG. Accordingly, the designated authority terminated the investigation which was initiated by a Notification.
Submissions
Counsel for the appellant submitted that even otherwise, since there is positive price undercutting in the present facts, even assuming there is no price depression/suppression, price injury on account of dumped imports cannot be negated.
Decision
The three member bench of Justice Dilip Gupta, President, Binu Tamta, Member (Judicial) And Hemambika R. Priya Member (Technical) observed that evidently all price parameters have been evaluated only with reference to the preceding year. In other words, whereas the designated authority considers that the comparison cannot be limited only between the base year and period of investigation, the comparison has been limited between the period of investigation and the preceding year. The base year has been completely ignored.
The bench said that it is seen that with respect to the factors relevant for assessing the price injury of the domestic industry, the designated authority has relied only on the increase in profit and return on investment in the period of investigation as compared to 2019-20, and has ignored the fact that the profit and return on investment has remained significantly below 2017-18 and 2018-19 level.
“The designated authority, in the present case, has exclusively relied upon the marginal improvement in the period of investigation as compared to 2019-20 and has ignored the trends over the years before that. Such selective examination, particularly in the present facts where the domestic industry itself has claimed injury since 2019- 20, may defeat the entire purpose of injury assessment”, the tribunal added.
The tribunal concluded that the designated authority would have to re-examine the matter in the light of the observations made above. For this purpose, the designated authority shall give an opportunity to both the appellant and the respondents for submitting their written submissions and after examination of the submissions and after considering the observations made hereinabove, give its final findings.
Case title: M/s. Reliance Industries Limited v/s Designated Authority, Directorate General of Trade Remedies
Citation: Anti Dumping Appeal No. 52460 Of 2022
