The Central Government's exemption of Pig Iron manufacturers from anti-dumping duty is unconstitutional, as such exemptions must follow proper investigation and consideration of public interest under the Customs Tariff Act.

JUDGMENT :

BHARGAV D. KARIA, J.

1. By this petition under Article 227 of the Constitution of India, the petitioner has prayed for quashing and setting aside the Notification No.69/2000- Customs dated 19th May 2000.

2. By the Notification No.69/2000, the Central Government imposed anti-dumping duty on Metcoke (Metallurgical Code) falling under Heading No.27.04 of the First Schedule of the CUSTOMS TARIFF ACT , 1975 (for short, “the Act”), originating from China P.R. and imported into India of the amount equivalent to the rate indicated in the Notification (in Dollar terms) converted into Indian currency with reference to the rate of exchange in force as on date on which the bill of entry is presented under Section 46 of the CUSTOMS ACT .

3. The petitioner is a private limited company wholly registered under the provisions of the Companies Act, 1956 and is engaged in the business of importing Low Ash Metallurgical Code (Metcoke) for the purpose of trade. The Metcode is classified under Heading 27.04 of the Schedule of the Act and are subject to basic customs duty at 15% ad valorem and auxiliary duty at the rate of 10% ad valorem. Metcoke is an important output for a number of industries including foundries, soda ash etc. There is a continuous requirement for importing Metcoke because the capacity of manufacturing Metcoke in India is limited to an installed capacity of only about 4 Lac Metric Tonne, which is not sufficient to meet the demand of over 2 Million Tonne.

4. The Central Government, by Notification No.2/95-Customs (N.T.) dated 1st January 1995, made the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination for Injury) Rules, 1995 (for short, “the Rules”).

5. The Rules provides for appointment of Designated Authority in order to investigate by the authority to determine the existence, degree and effect of any alleged dumping upon receipt of a written application by or on behalf of domestic industry and for submission of final findings by such authority,inter alia, with regard to export price, normal value and margin of dumping of the said Article and levy of anti-dumping duty on the basis of such findings, by the Central Government.

6. It is the case of the petitioner that sometime in 1997, M/s. B.L.A. Industries and Industries and Commerce Association, Dhanbad, with the support of Southern Fuels Limited filed an application before the Designated Authority, Ministry of Commerce alleging dumping of Metcoke by the exporters from the People’s Republic of China.

7. The Designated Authority, on the basis of such application, initiated an investigation into the alleged dumping of Metcoke vide Notification dated 28th Aug