DEVADHAR. J. P. , J.

( 1 ) THE petitioners who are engaged in the manufacture of vitrified/porcelein tiles in India has challenged the validity of the notifications dated 23rd May, 2003 and 1st July, 2003 whereby a new shipper review to determine a separate margin of dumping in respect of the goods of a producer from China has been initiated and during the pendency of the said new shipper review the goods of that producer is allowed to be cleared in to the Indian Market on provisional assessment without payment of anti-dumping duty. The main grievance of the petitioners is, firstly, the initiation of new shipper review by the designated authority is in mala fide exercise of powers, because, the anti-dumping duty on exports of vitrified/porcelein tiles of Chinese origin exported from China and UAE (subject goods for short) has been levied on 1st May, 2003 after two years of investigation and within 22 days, the said anti-dumping duty has been suspended by the impugned notifications with a view to unduly favour a Chinese producer at the cost of violating the statutory Rules which permits only a periodic review. Secondly, the new shipper review has been initiated without even conducting any preliminary investigation to ascertain as to whether the conditions precedent for invoking the new shipper review under Rule 22 have been fulfilled or not and thirdly, by permitting clearance of the subject goods during the new shipper review without payment of anti-dumping duty serious injury would be caused to the domestic industry including the petitioners.

( 2 ) BEFORE dealing with the facts of the case, it would be appropriate to briefly refer to the history and the law relating to anti-dumping duty.

( 3 ) THE concept of global economy though mooted by some countries in the year 1947, it gathered momentum in the year 1994 when Compension General Agreement on Tariffs and Trade (GATT 1994) was arrived at by as many as 118 member countries. Thereafter, the World Trade Organisation (W. T. O.) was established on 1st January, 1995 by 104 members nations of GATT. With the formation of the W. T. O. GATT 1994 became part of the W. T. O. chater of agreements. The main object of the W. T. O. inter alia is to play the role of a watchdog and provide the common institutional frame work for the conduct of trade relations among its members in matters related to the agreements and associated legal instruments so as to achieve greater coherence in global economic policy making. India is one of the founder members of the w. T. O. In the Uruguay round of talks the members of the W. T. O. agreed to remove quantitative restrictions on imports from one member country in to another so that the trade could flow without hindrance. It was agreed that the tariff rates and border treatment shall be made more and more predictable and uniform by member country within the stipulated time. Thus, with the globalisation, the Trade and Commerce which was hits to controlled and monitored by the respective Government, has opened up and with more and more countries being signatory to the global economy, the entire planet earth has become a market place for trade and commerce.

( 4 ) FREE flow of trade on account of globalisation had certain demerits too. More efficient producers world over would export goods at far cheaper prices than prevailing in the domestic market of the importing country thereby threatening the very survival of the domestic industry. If the domestic industry of the importing country collapses, there would be unemployment and economic unrest which would be detrimental to the interests of the Importing member country. Article VI of GATT 1996 took care of such an eventuality by permitting the member countries to take trade protection measures such as levy of anti-dumping duties, grant of subsidies and countervailing measures and safeguard measures etc.

( 5 ) IN compliance with its commitment to the W. T. O. the Government of india has taken steps, to