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2024 Supreme(Guj) 375

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
BHARGAV D. KARIA, NIRAL R. MEHTA, JJ.
Messrs Borosil Renewables Ltd. & Anr. – Petitioners
Versus
Union Of India & Ors. – Respondents
R/Special Civil Application No. 18143 of 2022
Decided On : 24-04-2024

Advocates Appeared:
For the Petitioners: Mr. Amal Paresh Dave, Mr. Paresh M. Dave.
For the Respondents: Mr. Saurabh Soparkar, Sr. Adv. with MS. Gargi R. Vyas, Mr. Ankit Shah, Notice Served By DS.

The Central Government's decision not to impose anti-dumping duty is a legislative function, not bound by the Designated Authority's recommendations, and does not require a reasoned order.

Headnote:(A) Customs Tariff Act, 1975 - Section 9A - Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 - Challenge to the Central Government's decision not to accept the Designated Authority's recommendations for anti-dumping duty on Textured Toughened Glass - The petitioners argued that the decision was arbitrary and lacked reasoning, leading to potential harm to domestic industry due to continued dumping from China. (Paras 2, 11, 13.1, 14.1)

(B) Legislative Discretion - The Central Government's decision not to impose anti-dumping duty is a legislative function and does not require a reasoned order, as it is not bound by the recommendations of the Designated Authority. (Paras 14.1, 14.3)

Facts of the case:
The petitioners, a domestic manufacturing company, challenged the Central Government's refusal to extend anti-dumping duty on imports of Textured Toughened Glass from China, arguing it would harm their business due to ongoing dumping practices. (Paras 4, 11)

Findings of Court:
The court found that the Central Government acted within its legislative discretion and was not required to provide a detailed reasoning for its decision. (Paras 17)

Issues: The main issues were whether the Central Government was obligated to accept the Designated Authority's recommendations and whether its decision was arbitrary. (Paras 11, 14.1)

Ratio Decidendi: The court ruled that the Central Government's decision-making process regarding anti-dumping duties is legislative in nature and does not necessitate adherence to the Designated Authority's recommendations. (Paras 14.1, 14.3)

Result: Petition dismissed.

JUDGMENT :

(Bhargav D. Karia, J.)

1. Heard learned advocate Mr. Paresh M. Dave with learned advocate Mr. Amal P. Dave for the petitioners and learned advocate Mr. Ankit Shah for the respondent No.1 and learned Senior Advocate Mr. Saurabh Soparkar with learned advocate Ms. Gargi R. Vyas for the respondent No.3.

2. The challenge in this Special Civil Application is directed against the order of the Central Government – respondent No.1 dated 17th August 2022, whereby, in exercise of powers conferred in sub-sections (1) and (5) of Section 9A of the Customs Tariff Act, 1975 (for the shorts, “the Act”) read with Rules 18, 20 and 23 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury), Rules, 1995 (for short, “the Rules”), the respondent No.1 Central Government has decided not to accept the findings of the Designated Authority in respect of levy of anti-dumping duty with regard to Textured Toughened (Tempered) Glass. The final findings of the Designated Authority were submitted to the Central Government in respect of sunset review investigation for levy of anti-dumping duty concerning the imports of Textured Tempered Coated and Uncoated Glass originating in or exported from China PR.

3. The petitioner company has set up a company at village Govali, District Bharuch for manufacturing sheet glass and various varieties of glass in the year 1994.

4. The petitioner commenced commercial production of a special variety of glass namely “Textured Toughened (Tempered) Glass with a minimum 90.5% transmission and having thickness not exceeding

4.2 mm in March 2010. Such Textured Toughened (Tempered) Glass are used as a component in Solar Photovoltaic Panels and Solar Thermal applications. The petitioner filed an application before the Designated Authority of the Ministry of Commerce and Industries, Government of India, under the Act and the Anti-dumping Duty Rules for imposition of anti-dumping duty on imports of the Textured Toughened (Tempered) Glass as large scale dumping of the said goods was from China and the local buyers and customers were importing and purchasing such goods of Chinese origin because the goods were available below the manufacturing cost in domestic industry at much cheaper price. The petitioner was suffering because demand and sale of the goods was going down continuously and substantially in view of availability of similar goods of Chinese origin at a price which was less than the production cost.

5. The Designated Authority appointed under Rule 3 of the Rules issued a Notification dated 23rd June 2016 inviting response and data, evidence as well as submissions as regards application from all concerned parties including the Chinese exporters and the local buyers/importers of the subject goods.

6. The respondent No.2 – Designated Authority notified the final findings on 20th June 2017 after giving an opportunity of hearing to all concerned persons to the effect that the subject goods were being exported from China to India below their associated normal value and the domestic industry had suffered material injury by the dumped imports of the subject goods and that anti-dumping duty to the extent specified in the Notification was required to be imposed for safeguarding the interest of the domestic industry. The Central Government, on the basis of the conclusions and recommendations of the Designated Authority, issued Notification dated 18th August 2017 under Section 9A of the Act imposing antidumping duty at the rates/amounts specified under the final findings Notification for the goods originated in or exported from China for a period of five years, as per Section 9A(5) of the Act. Since August 2017 onwards, anti-dumping duty at the rates/amounts specified in the Notification was being levied and collected on imports of the subject goods from China.

7. Since period of five years from the date of imposition of antidumping duty in August, 201

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