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2015 (9) TMI 715 - AT - CustomsComputation of actual cost of 4 ADPA Imposition of ADD Authority found that exports from Korea were being made below their normal value and domestic industry had suffered material injury and thereby imposed anti-dumping duty Authority constructed cost of production for 6PPD by considering international price of major raw material, 4 ADPA, instead of actual procurement cost of said raw material from China Whether Authority was right in constructing cost of production of 6PPD, disregarding cost of 4ADPA Held that:- cost of production of both 4ADPA and 6PPD was affected by non-market considerations In such scenario, Authority rightly rejected export price for 4ADPA as not reliable Act and Rules, envisage determination of normal value, which reflects true cost of production. In determining normal value, sales of like product in domestic market of exporting country at prices below per unit (fixed and variable) costs of production plus SGA costs will be treated as not being in ordinary course of trade by reason of price when major input imported from non-market economy country, sale price reflected in record will have to be scrutinized to detect and correct distortion resulting from non-market economy price of input used, cost of which is required to be worked out in order to correct distorted cost of production of article Authority is justified in rejecting domestic sales price shown as record when input in question was produced within non-market economy country, because price for such input would be distorted, as they do not reflect normal market economy purchase price Apex Court in case of Reliance Industries [2006 (9) TMI 180 - SUPREME COURT OF INDIA], held that normal value is country specific not exporter specific, and hence accounts of exporter are to be considered only, where they reflect normal or ordinary cost of inputs. Authority rightly rejected price of 4ADPA and opted for construction of normal value, based on international price of 4ADPA Domestic industry had brought on record evidence of import prices of 4ADPA from Germany to India, but Authority before recording Final Findings, did not give opportunity to comment on acceptability / appropriateness of such evidence Authority has not observed due process and violated principles of natural justice Designated Authority therefore directed to make disclosure of international price of 4ADPA adopted by Authority as well as methodology used for fixation of normal value, export price and dumping margin Domestic industry and other interested parties, shall also be allowed to participate in such post-decisional hearing Application allowed.
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