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2018 Supreme(Mad) 3997

IN THE HIGH COURT OF JUDICATURE AT MADRAS
S. MANIKUMAR, SUBRAMONIUM PRASAD, JJ.
Saint Gobain India Private Ltd, Rep by its Team Leader – Finance & Company Secretary, Chennai - Appellant
Versus
Union of India Ministry of Finance through Secretary Department of Revenue North Block New Delhi & Others - Respondent
Writ Appeal Nos. 412 to 414 of 2018
Decided on : 14-11-2018

Advocate Appeared:
For the Appellant :P.S. Raman, Sr. Counsel, Jitender Singh, Karthik Sundaram, Advocates.
For the Respondents:A.P. Srinivas, T.L. Thirumalaisamy, R. Parthasarathy, Lakshmi Kumaran, Advocates.

Headnote:

Customs Tariff Act, 1975 - Section 9 A - Section 9 A (6) - Customs Act, 1962 - General Agreement on Tariffs and Trade, 1994 - Article 3 - Article 5 - Article. 27 - Article 6 - Tariffs & Trade - Exporter Or Producer - Margin Of Dumping - Appellants have filed these writ petitions : challenging initiation notification issued by respondent No.2 herein, commencing new shipper review investigations on an application filed by respondent No.3 - Exporters of a particular Country were flooding domestic markets with goods at rate much lower than rates at which these exporters normally sell same in their own Country and also much lesser than rates at which manufacturers of country to which such goods shall be exported were able to sell - This was resulting in a heavy loss/injury to domestic market - Imposition of Anti Dumping Duty was a result of General Agreement on Tariffs & Trade to which India is a party - GATT recognized injury caused by this dumping of goods by exporters of Country and sought to remedy injury - Purpose of GATT was to balance rights of exporters from other Countries and at same time protect interest of domestic markets – Held, Authorities shall, as a rule, determine an individual margin of dumping for each known exporter or producer concerned of product under investigation - In cases where number of exporters, producers, importers or types of products involved is so large as to make such a determination impracticable, authorities may limit their examination either to a reasonable number of interested parties or products by using samples which are statistically valid on basis of information available to authorities at time of selection, or to largest percentage of volume of exports from country in question which can reasonably be investigated - For purposes of this Agreement, “interested parties” shall include: an exporter or foreign producer or importer of a product subject to investigation, or a trade or business association a majority of members of which are producers, exporters or importers of such product; government of exporting Member; and a producer of like product in importing Member or a trade and business association a majority of members of which produce like product in territory of importing Member - This list shall not preclude Members from allowing domestic or foreign parties other than those mentioned above to be included as interested parties – Appeal Disposed of.

JUDGMENT :

SUBRAMONIUM PRASAD, J.

1. Instant writ appeals are directed against the judgment dated 6/11/2017, passed in W.P.Nos.12950, 14346 and 17696 of 2017.

2. Appellants have filed these writ petitions : 1) challenging initiation notification dated 23.09.2015 bearing F.No.15/16/2015- DGAD issued by respondent No.2 herein, commencing new shipper review investigations on an application filed by respondent No.3 herein. 2)The final finding dated 10.04.2017 vide notification No.15/16/2015-DGAD issued by respondent No.2 as corrected by the impugned final finding recommendation dated 12.04.2017 and 3) Anti- Dumping and Allied Duties notification dated 16.06.2017 bearing No.30/2017-Customs (ADD) issued by the respondent No.1.

3. It was found that exporters of a particular Country were flooding domestic markets with goods at rate much lower than the rates at which these exporters normally sell the same in their own Country and also much lesser than the rates at which the manufacturers of the country to which such goods shall be exported were able to sell. This was resulting in a heavy loss/injury to the domestic market. The Imposition of Anti Dumping Duty was a result of General Agreement on Tariffs & Trade (herein after referred to as GATT) to which India is a party. GATT recognized the injury caused by this dumping of goods by the exporters of the Country and sought to remedy the injury. Purpose of GATT was to balance the rights of the exporters from other Countries and at the same time protect the interest of the domestic markets.

The decision of GATT translated with the introduction of Section 9A in the Customs Tariff Act, 1975.

4. Section 9 A of the Customs Tariff Act, 1975 reads as under:-

“Where any article is exported from any country or territory (hereinafter in this section referred to as the exporting country or territory) to India at less than its normal value, then, upon the importation of such article into India, the Central Government may, by notification in the Official Gazette, impose an anti-dumping duty not exceeding the margin of dumping in relation to such article.

5. A perusal of Section 9 A of the Act, would show that Anti Dumping Duty is imposed on a person, who exports his goods into India, at a rate less than its normal value, which will de stabilise the domestic manufacturers. The Hon'ble Supreme Court, in S & S Enterprises Vs. Designated Authority and Ors {(2005) 3 SCC 337, has observed as hereunder:-

“The imposition of dumping duty is under Section 9A of the Customs Tariff Act 1975 and the Rules and is the outcome of the General Agreement on Tariff and Trade (GATT) to which India is a party. The purpose behind the imposition of the duty is to curb unfair trade practices resorted to by exporters of a particular country of flooding the domestic markets with goods at rates which are lower than the rate at which the exporters normally sell the same or like goods in their own countries so as to cause or be likely to cause injury to the domestic market. The levy of dumping duty is a method recognized by GATT which seeks to remedy the injury and at the same time balances the right of exporters from other countries to sell their products within the country with the interest of the domestic markets. Thus the factors to constitute 'dumping', is (i) an import at prices which are lower than the normal value of the goods in the exporting country; (ii) the exports must be sufficient to cause injury to the domestic industry.”

6. Similarly, in Reliance Industries Ltd., Vs. Designated Authority & Ors {(2006) 10 SCC 368}, the Hon'ble Supreme Court, observed as under:-

The result was that an industrial base was created in India after independence and this has definitely resulted in some progress. The purpose of Section 9A can, therefore, easily be seen. The purpose was that our industries which had been built up after independence with great difficulties must not be allowed to be destroyed by unfair competition of some foreign compan



























































































































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